Iberdrola is partnering with chemicals company Fertiberia to build what they say will be the biggest plant generating green hydrogen for industrial use in Europe.
The €150m investment will see the plant constructed in Puertollano, Spain, and become operational in 2021.
Iberdrola will be responsible for the production of green hydrogen from electricity generated from a 100MW solar farm combined with a 20 megawatt-hours lithium-ion battery storage system and 20MW electrolyser.
The hydrogen plant will supply the green gas for use at Fertiberia’s ammonia plant in Puertollano.
Fertiberia will update and modify the plant to be able to use the green hydrogen produced to manufacture green fertilisers.
The chemicals company will reduce natural gas requirements at the plant by over 10%.
Construction of the plant will generate 700 jobs and, once operational, will avoid 39,000 tonnes a year of carbon dioxide emissions.
Iberdrola chairman Ignacio Galan said: “Today we are launching the first major green hydrogen project in Europe, demonstrating that thanks to renewables and technological innovation, it is possible to continue to meet the needs of the electrification and decarbonisation of our industry.
“The initiative shows the path and opportunities offered by the energy transition to develop innovative projects as the focus for industrialisation and employment in our country.”
Fertiberia president Javier Goni said: “The partnership with Iberdrola allows Fertiberia to take a further step in its ambition to become a European reference for sustainable solutions for agriculture and to lead the paradigm shift required for the energy transition in the chemical sector, thanks to the manufacture of green ammonia from domestic renewable energy sources.”