The European Investment Bank (EIB), Instituto de Credito Oficial (ICO) have agreed to lend €88m to finance a green hydrogen project that Iberdrola is developing in Spain.
The funds will be used to develop a 100MW photovoltaic plant, a 20 megawatt-hour battery and an electrolysis facility in Puertollano, Castilla-La Mancha.
It will be one of the largest plants of its kind in Europe when built.
EIB is lending €53m and ICO €35m to Iberdrola’s project with both loans being certified as green financing.
The fertiliser industry close to the plant will be able to use the green hydrogen to replace grey hydrogen made with natural gas.
An estimated 300 jobs will be created in Castilla-La Mancha during the implementation phase. The electrolyser will be capable of producing 1000 tonnes of green hydrogen per year.
During the signing ceremony, Iberdrola chief executive Ignacio Galan (pictured) said: “With this new agreement, we continue to make progress in green hydrogen, which is essential for sectors that are difficult to electrify.
“Thanks to the fact that this energy vector creates industry and jobs in our country, it has been identified as one of the recipients of the Next Generation EU, which is essential to accelerate its technological development and turn it into a mass energy solution.”