Moeve's €3bn Investment in Andalusia Green Hydrogen Valley Sparks Renewable Energy Expansion in Spain
Key Ideas
  • Moeve, formerly Cepsa, to invest over €3bn in two green hydrogen production facilities in Andalusia, with a total electrolysis capacity of 2 GW and production of 300 kt/year of green hydrogen, ammonium, and methanol.
  • Expansion includes plans for up to 30 new biomethane plants throughout Spain by 2030, aiming to produce biomethane from agricultural and livestock waste, with partnerships to develop five plants producing around 50 GWh/year each.
  • Repsol, a Spanish rival, announces investments of over €800m in the Tarragona Ecoplant project in Catalonia to produce 240 kt/year of renewable and circular methanol from municipal solid waste, aligning with a strategy to increase renewable fuel production.
  • The projects signify a significant step towards sustainability, renewable energy, and the decarbonization of the industrial and transportation sectors in Spain.
The Spanish energy group Moeve, previously known as Cepsa, has revealed plans to invest more than €3bn in the Andalusia Green Hydrogen Valley. This investment will include the establishment of two green hydrogen production facilities in Palos de la Frontera and San Roque, Andalusia. These facilities are projected to have a combined electrolysis capacity of 2 GW, with each facility capable of producing 1 GW. The output of these facilities is expected to reach up to 300 kt/year of green hydrogen, green ammonium, and methanol. The Huelva plant is scheduled to commence operations in 2026 and reach full capacity by 2028, while the Campo de Gibraltar plant is set to be operational in 2027. The primary objective of these facilities is to supply green hydrogen and its derivatives to industrial consumers and the heavy road transportation sector. The investment by Moeve also includes a plan to allocate €600m towards the construction of approximately 30 new biomethane plants across Spain by 2030. These plants will focus on producing biomethane from agricultural and livestock waste. Moeve has formed partnerships with various entities to develop five biomethane plants, with each plant estimated to generate around 50 GWh/year of biomethane. The strategic goal is to manage a project portfolio of 4 TWh by 2030, with regions like Andalusia, Catalonia, and Galicia being identified as having substantial potential. Furthermore, another Spanish energy company, Repsol, has disclosed investments exceeding €800m in the Tarragona Ecoplant project situated in Catalonia. This initiative aims to produce 240 kt/year of renewable and circular methanol using 400 kt/year of municipal solid waste through gasification. The project, slated to commence in 2029, aligns with Repsol's broader strategy of scaling up renewable fuel production to between 1.5 and 1.7 Mt/year by 2027 and up to 2.7 Mt/year by 2030, encompassing renewable hydrogen and biomethane. These significant investments by Moeve and Repsol underscore a positive shift towards sustainable practices, renewable energy adoption, and the decarbonization of various sectors, including industry and transportation, in Spain.
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