HyDeal España, the first industrial implementation of the HyDeal Ambition platform, will become the largest renewable green hydrogen giga-project worldwide, according to the classification made public by the International Renewable Energy Agency (Irena).
This initiative, driven by companies such as ArcelorMittal, Enagás, Grupo Fertiberia, and DH2 Energy, was officially established as an industrial joint venture in November 2021. After a year-long pre-feasibility study, it will now lead to the development, financing, and construction of a whole set of infrastructures for the production and transportation of green hydrogen in Spain.
HyDeal Spain will be the first industrial implementation of the HyDeal Ambition platform in Spain and Europe, supplying renewable hydrogen for the production of green steel, green ammonia, green fertilizers, and other low-carbon industrial products.
Moreover, HyDeal Ambition announced in 2021 its project to create an industrial ecosystem for the decarbonization of the national productive fabric based on the production, transport, and consumption of renewable hydrogen.
To be precise, the first stage of the project will supply a major industrial complex located in Asturias, producing green hydrogen through electrolysis. This will be done at a competitive price compared to other fossil fuels thanks to solar plants located in different parts of the northern half of Spain. According to the organizations implicated, production is scheduled to start in 2025 and is expected to have a total installed capacity of 9.5 GW, supplying electricity to 7.4 GW of electrolysis capacity by 2030.
Green hydrogen to avoid CO2 emissions
For their part, ArcelorMittal and Grupo Fertiberia, together with other organizations that will join HyDeal España, will be the major purchasers of this clean energy. They have a plan to purchase 6.6 million tonnes of renewable hydrogen. also, it will be carried out over the next 20 years, which would mean avoiding 4% of Spain’s current CO2 emissions.
In this way, explain the promoters of this initiative, “the purchasing companies will advance in the production of green steel, green ammonia, green fertilizers, and other low-carbon industrial and energy products, positioning themselves as European leaders in their respective markets”.
A sustainable and self-sufficient green hydrogen model
HyDeal Spain aims to become a reality through the development of “a disruptive industrial and financial model, based on the integration of value chains, solar energy capture, industrial installation of electrolyzers, deployment of exclusive pipelines for hydrogen transport and aggregation of energy demand”. This will create a direct connection “between large-scale renewable hydrogen production and cost-effective consumption in the long term, creating a sustainable system”.
An alternative to fossil fuels
Thanks to this project, large-scale green hydrogen will sustainably replace fossil fuels in industry. The initiative provides a safe, competitive, and carbon-free energy production alternative. In addition, the contribution to energy independence will be another major benefit. So much so that HyDeal plans to supply the equivalent of 5% of the natural gas imported by Spain.
Thus, this platform joins Spain’s energy transition at an important turning point. A situation in which new industrial opportunities and sustainable jobs in collaboration with the different local communities where it will have a presence are key.
Likewise, the project’s objectives are aligned with the institutional ambition of making the country a world pioneer in the production of clean energy. This, in turn, will be aligned with the European Green Pact and its “Goal 55” (Fit for 55) to reduce emissions by 55% by 2030.
The HyDeal Spain project
Thierry Lepercq, President of the platform and spokesperson of HyDeal Ambition: “HyDeal Spain is the first concrete implementation of the green hydrogen model with a cost of 1.5 €/kg announced in February 2021. Green hydrogen is not just about small, local, high-cost projects. It is now a complete product, able to compete with coal, oil, and natural gas in terms of both cost and volumes. It is the perfect large-scale weapon against the climate crisis and skyrocketing energy prices”.
José Manuel Arias, Chairman of ArcelorMittal: “HyDeal Spain will be able to offer a competitive supply of hydrogen from renewable energy sources. A key factor in enabling us to achieve our goal of reducing CO2 emissions from our business in Spain by 50% by 2030. At the same time, other sectors of the economy will also be able to benefit from the potential offered by hydrogen as a clean and sustainable energy solution to decarbonize their own processes”.
Marcelino Oreja, CEO of Enagás: “Enagás is fully committed to the decarbonization process. Our participation in HyDeal Spain is a milestone due to its model characteristics, based on the integration of the value chain and scale. For its extensive knowledge in the management of energy networks and hydrogen technology”.
Javier Goñi, CEO of Fertiberia Group: “Our participation in this ambitious alliance is a new and significant step in our roadmap towards decarbonization. Building on HyDeal España’s competitive green hydrogen, we will invest in a new state-of-the-art and highly flexible green ammonia plant to cover the needs of our fertilizer plant in Avilés”.
Philippe Esposito, President of DH2 Energy: “Green hydrogen will drive a disruptive paradigm shift to reduce global emissions and achieve climate neutrality. At the same time, it allows Spain and its industry to position itself in the medium term as a major player among the world’s leading energy-producing nations.
Source: Energías Renovables (2022)