Cepsa Picks Siemens Energy's PEM Tech for 100 MW in Andalusian Green Hydrogen Valley

Cepsa has chosen Siemens Energy, a global leader in energy technology, to provide 100 megawatts (MW) of Proton Exchange Membrane (PEM) electrolysis technology for green hydrogen production at its La Rábida Energy Park in Palos de la Frontera, southern Spain. As part of its larger vision to establish 400 MW of green hydrogen production in Huelva, Cepsa aims to achieve a total capacity of 2 GW by 2030, with 1 GW each in Huelva and Cádiz. This initiative represents one of Europe's most extensive projects in this field. The final investment decision for the initial phase of the project is pending.

To complement the remaining 300 MW of the project, Cepsa has opted to incorporate alkaline water technology alongside PEM electrolysis, a decision made in collaboration with partner Fertiberia. This dual-technology strategy forms part of a multi-supplier approach aimed at establishing a European value chain for green hydrogen. Such initiatives are crucial for decarbonizing various sectors, including industry and transportation by ground, air, and sea, throughout the continent in the coming decade.

Carlos Barrasa, Executive Vice President of Commercial and Clean Energies at Cepsa, remarked, "Cepsa remains committed to forging significant strategic partnerships to advance the Andalusian Green Hydrogen Valley. This endeavor allows us to deliver essential green molecules to our customers as they progress toward decarbonization. With green hydrogen produced on a large scale, Europe can transition to a zero-carbon energy system. By leveraging a mix of electrolyzer technologies, Cepsa can mitigate technology risks to guarantee a stable supply for our customers."

Alexey Ustinov, Head of Sustainable Energy Systems at Siemens Energy, expressed enthusiasm about participating in Cepsa's 'Green Hydrogen Valley' initiative, emphasizing that the transition to sustainable energy hinges on the adoption of green molecules. He noted the industry's readiness and highlighted that the production capacity of electrolyzers is no longer a limiting factor in advancing the hydrogen economy, citing Siemens Energy's multi-gigawatt electrolyzer factory in Berlin as evidence. However, he underscored the need for expedited funding approvals and reduced bureaucratic obstacles to facilitate the critical role of such projects in driving decarbonization efforts across Europe.

This collaboration merges high-quality German engineering with the favorable conditions of southern Spain to produce low-carbon electricity. The necessary green power will be sourced from abundant solar and wind energy in the region, rendering southern Spain a highly competitive location for green hydrogen production in Europe. Additionally, strategic access to ports in the area establishes the foundation for a maritime corridor established by Cepsa and its partners, facilitating hydrogen transportation between southern and northern Europe to promote decarbonization solutions continent-wide.

Within this emerging ecosystem, there will arise chances to cultivate assembly expertise for electrolysis equipment in Spain, fostering job creation and safeguarding Europe against vulnerabilities stemming from shortages of critical equipment and extended lead times in competitive markets.