Tuesday, February 27, 2024
The urgency to find alternatives to fossil fuels is undeniable if we are to meet decarbonization goals and curb climate change. And the green transition of the economy requires access to renewable energy sources that are both affordable and secure, ensuring a fair transition. In this regard, green hydrogen has been postulated in recent years as one of the keys to achieving it.
The first edition of the National Congress on Green Hydrogen, held in Huelva, placed a spotlight on both the opportunities and challenges in developing this energy source. From February 7th to 9th, the event drew over 900 participants, 300 companies, and more than 60 panelists, all rallying behind a clear objective: to unlock Spain’s potential in green hydrogen production for domestic use and export, positioning the nation as a global energy powerhouse.
Sara Aagesen, Secretary of State for Energy at the Ministry of Ecological Transition and the Demographic Challenge, opened the congress by underscoring Spain’s growing interest in hydrogen projects—from 28 in 2020 to 650 last year. She emphasized Spain’s pivotal role “here and now” in this arena, with its deployment bringing promising implications for industrial growth and job creation.
Highlighting this, a recent report presented at Davos by Cepsa and Manpower suggests that new renewable fuels could yield up to 1.7 million new jobs and boost the European GDP by €145 billion by 2040.
During the opening event, Juan Manuel Moreno Bonilla, President of the Andalusian Regional Government, emphasized “the unique opportunity” presented by green hydrogen for the region, particularly for Huelva, which possesses the ideal characteristics to spearhead the green revolution.
Cepsa CEO Maarten Wetselaar echoed these sentiments during the opening session of the Congress, underlining the imperative of “not missing this train”, stressing the need to “embark on this journey collectively, leveraging partnerships, public-private collaboration, and societal engagement. We are undertaking Europe’s most ambitious project with the Andalusian Green Hydrogen Valley.” Cepsa is leading a project with a capacity of 2GW, with two plants slated for installation in Palos de la Frontera (Huelva) and San Roque (Campo de Gibraltar), are scheduled to be commissioned in 2026 and 2027, respectively, with a total investment of €3 billion. These facilities will produce up to 300,000 tons of green hydrogen annually, eliminating the emission of 6 million tons of CO2 each year.
Opportunities in the Andalusian Green Hydrogen Valley
During a panel dedicated to the Andalusian Valley, speakers underscored the need for “ambitious” approaches in such projects, along with the pivotal role that Andalusian ports will play in the proliferation of green hydrogen, not merely as users but also as vital transportation channels to the European market.
Participants emphasized the importance of both plants evolving into magnets for other components of the hydrogen supply chain, such as electrolyzer factories or transportation technologies. “With sustainable, competitive, and readily available energy in the medium and long term, we must attract industries here that are energy-intensive–major consumers–requiring substantial energy,” affirmed Carlos Barrasa, Director of Commercial & Clean Energies at Cepsa.
The Key Aspects of Green Hydrogen in Spain
In a subsequent discussion involving representatives from key green hydrogen hubs across the peninsula—including Catalonia’s Hydrogen Valley, Andalusia’s Hydrogen Valley, the Basque Hydrogen Corridor, and the emerging cluster in Alicante—, speakers emphasized the immense opportunity for “collaboration” among them, viewing it as an ongoing “adventure” where practical learning is key.
Despite operating in a rapidly evolving technological landscape with uncertain bets, these national hydrogen valleys are already developing training programs for new job profiles. “The great opportunity for job creation lies with the operators who will be directly involved in plant operations. We've announced collaboration agreements to facilitate dual vocational training programs, offering hands-on experience," stated Joaquín Rodríguez Jadraque, Director of Hydrogen & Clean Power at Cepsa and representative of the Andalusian valley.
Decarbonizing Transportation for the Future
Another central theme was the decarbonization of transportation, which contributes 15% of global CO2 emissions. While green hydrogen is already a reality in industry, representatives from road transport (Interbus Group), aviation (Airbus), maritime (Baleària), and refueling infrastructure (Resato and Air Liquide) emphasized that each sector requires specific regulatory frameworks.
For heavy road transport, hydrogen is seen as a major solution for medium and long distances. In the maritime sector, large long-haul ships require fuels with higher energy density, making hydrogen-derived products like ammonia or methanol, already in use, viable options.
In aviation, Airbus aims to “introduce the first hydrogen-powered commercial passenger aircraft by 2035”. Challenges remain, such as liquid hydrogen supply at airports. Currently, while awaiting future technological developments for hydrogen in aviation, SAF (Sustainable Aviation Fuel) is the most effective option, reducing emissions by up to 90% compared to traditional kerosene.
In summary, the Congress concluded that green hydrogen has come to stay, to address energy transition challenges in transportation, ensuring a promising and enduring future.
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