HyDeal España renewable hydrogen initiative launches

HyDeal España is the first implementation of the industry collaborative HyDeal Ambition platform to deliver green hydrogen at fossil fuel prices across Europe.

HyDeal España, which was officially incorporated as an industrial joint venture in November 2021 following a one-year prefeasibility study, will manage the development, funding and construction of renewable hydrogen production and transmission infrastructures to deliver competitive renewable hydrogen in northern Spain.

Production is planned to start in 2025, with the total installed capacity expected to reach 9.5GW of solar power and 7.4GW of electrolysers by 2030.

Anchor sponsors include the Spanish gas transmission system operator Enagás, industrial partners ArcelorMittal and Grupo Fertiberia and founder DH2 Energy.

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ArcelorMittal, a multi-national steel manufacturer and fertiliser giant Grupo Fertiberia, along with other large hydrogen clients set to join the project, plan to purchase 6.6Mt of renewable hydrogen over 20 years to produce green steel, green ammonia, green fertilisers and other low carbon industrial and energy products.

HyDeal España claims the development of a disruptive industrial and financial model based on value chain integration, captive solar power, electrolyser industrialisation, dedicated hydrogen pipelines as well as demand aggregation to give it a decisive cost advantage.

Mass-scale renewable hydrogen will sustainably replace fossil fuels in industry, energy and mobility and will provide Spain with a domestically produced, secure, competitive and zero-carbon energy, steel and food supply alternative, according to a statement.

HyDeal España aims to provide the equivalent of 5% of Spain’s natural gas imports.

"HyDeal España is the first concrete implementation of the 1.5 €/kg green hydrogen system,” comments Thierry Lepercq, Chairman of the joint venture and spokesperson for HyDeal Ambition.

“We bring a historic message to all energy users: green hydrogen is not just about small and local expensive projects. It is now a full-fledged commodity, able to compete with coal, oil and natural gas in both costs and volumes, the perfect weapon at scale against the climate crisis and skyrocketing energy prices.”

HyDeal Ambition

The HyDeal Ambition was launched in February 2021 as a collaboration of more than 30 companies spanning the value chain with the aim to deliver 100% green hydrogen at €1.5/kg across Europe before 2030.

The ambition is to achieve 95GW of solar and 67GW of electrolysis capacity by 2030 to deliver 3.6Mt of green hydrogen per year to users in the energy, industry and mobility sectors via the gas transmission and storage networks.

A phased approach is anticipated with the first deliveries in Spain as well as the southwest of France followed by an extension towards the east of France and then Germany.

A leg also is planned from North Africa to Italy and Central Europe.

In the first phase of HyDeal España, green hydrogen will be blended with natural gas in the current infrastructure. The current regulation allows blending up to 5%, although discussions are under way to increase the level with Enagás calling for 11%.

In the second phase from 2025 on, when regulation also should be in place, the objective is to use a dedicated infrastructure for the supply of green hydrogen.

Commenting on Enagás’s participation in HyDeal España, Marcelino Oreja, CEO, described the TSO’s participation as one of the most important of the more than thirty hydrogen projects in participation in Spain and a “milestone” because of its model based on value chain integration and scale.

“Because of its broad knowledge on energy networks management and hydrogen technology, Enagás will play an important role in this project, together with its partners, to build the future world’s largest integrated renewable hydrogen hub,” he promised.