As Europe seeks to reduce its reliance on fossil fuels, Spain is racing ahead in developing green hydrogen, alongside a combination of wind and solar power, in an effort to cut emissions from its economic activities.
A solar energy research facility in Almeria, Spain.
According to the consulting firm Wood Mackenzie, Spain accounted for 20% of global green hydrogen projects in Q1 2022, ranking second only to the US, which held more than half of the projects.
Rafael Cossent, an expert in energy economics at Comillas Pontifical University in Madrid, stated that many countries are interested in green hydrogen, but this sector in Spain has rapidly accelerated in recent months.
During her visit to Spain in May, European Commission (EC) President Ursula von der Leyen said that the country has become a very attractive nation for green hydrogen and that the transition to this fuel type is well underway.
Green hydrogen is produced through the electrolysis of water using electricity from renewable energy sources. Hydrogen is considered a green fuel because it emits no CO2 during its production process. Water electrolysis is a process that uses electricity to break down water into hydrogen gas and oxygen. This technology is part of the EU's effort to achieve carbon neutrality by 2050.
According to experts, green hydrogen can replace coal in heavy industries like steel production. This fuel can also be used to make fertilizers and is expected to be a potential fuel for buses, trains, and aircraft in the future.
However, a major drawback for green hydrogen is its relatively high production cost. Nevertheless, technological advancements and the rising price of fossil fuels have made green hydrogen more competitive.
Javier Brey, President of the Spanish Hydrogen Association (AeH2), stated that Spain has great potential because it has a well-developed renewable energy sector, with significant wind and solar resources.
Additionally, expert Cossent believes that Spain has another advantage in its extensive natural gas network and liquefied natural gas (LNG) storage facilities, which can be converted for hydrogen export. According to Cossent, to get ahead, Spain will need to accelerate the deployment of solar and wind farms, as the electrolysis process consumes a significant amount of electricity.
Last year, the Spanish government launched a €1.5 billion ($1.8 billion) plan to support green hydrogen projects over the next three years, thanks to EU recovery funds. Along with private investments, nearly €9 billion will be spent by 2030.
Spanish energy companies such as Iberdrola, Repsol, and Enagas have all initiated green hydrogen projects.
