Spanish firm inks deals for green hydrogen corridor with Netherlands

By Alyssa McMurtry

OVIEDO, Spain (AA) - Spanish energy company Cepsa signed agreements on Wednesday to establish a green hydrogen corridor between Spain and the Netherlands.

The deals, made with Norwegian multinational Yara Clean Ammonia and Dutch firm Gasunie, are pivotal steps toward the first green hydrogen transport route connecting Northern and Southern Europe.

The corridor will link Europe’s largest proposed green hydrogen project in Andalusia with the port in Rotterdam, one of the highest energy-demanding regions in Europe. From there, the hydrogen can be transported via pipeline for the use of other industrial companies across the continent.

The deals were signed in the presence of the Kings of Spain and the Netherlands.

“This has major implications from industrial and geopolitical perspectives, and Spain shouldn’t miss this opportunity,” stated Spain’s environment Minister Teresa Ribera, who was also present at the event.

Cepsa also unveiled its plans for a €1 billion ($1.08 billion) green ammonia plant in Algeciras. According to Cepsa, green ammonia is particularly effective in decarbonizing maritime shipping.

The green ammonia plant is a part of the larger Andalusian Green Hydrogen Valley project, which is Europe’s largest green initiative that aims to annually produce 300,000 tons of green hydrogen while avoiding 6 million tons of carbon dioxide emissions, according to Cespa.

“The agreements announced today give our project crucial access to markets, customers, and distribution infrastructure: three key elements to unlock the potential of our Hydrogen valley. This is major news for the decarbonization of European shipping and industry and for the planet,” said Cespa CEO Maarten Wetselaar.

Spain is making a significant bet on green hydrogen. Ribera suggests it will assist in decarbonizing industry and maritime shipping and provide a way for Spain to store excess energy produced during the sunniest hours of the day.

Spain is home to 20% of the world’s green hydrogen projects, placing the country second after the United States, said Wood Mackenzie consulting firm in 2022.