Cepsa, Enagas Renovable and Alter Enersun will develop a green hydrogen plant that will be operational in 2026.

By Shardul Sharma

Cepsa, Enagas Renovable and Alter Enersun have signed an agreement to jointly develop a green hydrogen plant in Huelva, connected to a solar power plant, within the Andalusian Green Hydrogen Valley, Cepsa said on January 25. 

The new green hydrogen plant, whose electrolysis capacity will reach 200 MW, will be operational in 2026 and its production will be used to supply Cepsa's own industrial consumption and will enable the manufacture of advanced biofuels. The photovoltaic facility will also have a capacity of 200 MW.

Alter Enersun will be in charge of developing the photovoltaic plant, which will be located on land belonging to the Port Authority of Huelva in the capital city, and Cepsa and Enagas Renovable will be responsible for the construction and commissioning of the hydrogen plant at the Cepsa Energy Park facilities in Palos de la Frontera.

Cepsa and Enagas have also signed a complementary agreement for the production and purchase of biomethane, which will be used to replace natural gas in various industrial processes.

Cepsa said the new partnership is part of its 2030 Positive Motion strategy, through which the company is working on energy transition, sustainable mobility in Spain and Portugal, as well as the production of renewable hydrogen and advanced biofuels.