Cepsa and ACE Terminal Join Forces to Create Green Hydrogen Supply Chain from Spain to the Netherlands

  • 21-Feb-2023
  • Journalist: Jaideep

Spain [Europe]: Cepsa and ACE Terminal recently signed a Memorandum of Understanding (MoU) that will see the Spanish energy company supplying green Ammonia to the Rotterdam port's planned import terminal. The Ammonia will be converted into Hydrogen or used directly in the shipping and other industries throughout Northwest Europe. This MoU is expected to spur on green initiatives in the region, helping to make sustainable energy more accessible.

Cepsa is taking a giant leap towards becoming a leader in renewable energy and sustainable mobility with the development of two green Hydrogen projects in Andalusia, southern Spain. The two plants, which will require an investment of three billion euros, will form part of the largest green Hydrogen hub in Europe: The Andalusian Green Hydrogen Valley. As part of their 2030 Positive Motion strategy, Cepsa has recently signed multiple partnerships across the Hydrogen value chain to optimize the production and use of environmentally friendly energy sources.

Gasunie, HES International, and Vopak have joined forces to create ACE Terminal - a new entry point for the Netherlands that will facilitate Ammonia as a carrier for green Hydrogen and provide sustainable feedstock. Located at the port of Rotterdam - an important hub for Northwest Europe's energy sector - the terminal is expected to be up and running in no time thanks to the reuse of existing assets and infrastructure. To kick off the project, Cepsa has signed an MoU with ACE open access hub terminal, signalling further partnerships with other clients for the importation of green Hydrogen and Ammonia.

Cepsa and ACE Terminal have entered a Memorandum of Understanding (MoU) to collaborate on the overseas transport, distribution, and processing of green Ammonia into green Hydrogen for end customers across Northwest Europe.

The strategic advantage of this agreement is rooted in the port of Rotterdam's industrial infrastructure, as well as its proximity to the national Hydrogen network. This will enable efficient transportation of green Ammonia from ports to hinterland markets, as well as provide access to customers in Northwest Europe. The goal is to formalize a commercial agreement that will facilitate the production and use of green Hydrogen.

The alliance between Cepsa in southern Spain and the North is a ground-breaking move for achieving energy independence, security, and affordability across Europe. By utilizing green energy sources such as sun, wind, and land, this partnership aims to decarbonize industries and transportation in the North while taking advantage of competitively priced electricity from an existing grid - all conveniently accessible through high-traffic ports.

Cepsa has entered a strategic alliance with ACE Terminal to further their agreement with the Port of Rotterdam. This alliance enables Cepsa to export green Hydrogen produced at the San Roque Energy Park, located near the Bay of Algeciras via Hydrogen carriers, such as Ammonia. This marks the first ever green Hydrogen corridor between Northern and Southern Europe, paving the way for safe delivery of green Hydrogen from two major ports - Rotterdam and Algeciras.

Cepsa, a Spanish energy company, is aiming to start exports of green Hydrogen from Spain in 2027. This timeline is in sync with the ACE Terminal project schedule, allowing for a greener future for the country.

Rob Jetten, the Minister of Climate and Energy, was present in Madrid at the signing of the memorandum of understanding. "This MoU between Cepsa and ACE Terminal is a great example of the type of collaborations that are needed, and we want to stimulate with the new Memorandum of Understanding in the field of renewable Hydrogen between Spain and the Netherlands. It constitutes a significant milestone for the European Hydrogen Strategy in developing Hydrogen corridors between south and north Europe. This will enable us to reduce reliance on fossil fuels and to achieve the Dutch decarbonization and climate goals".

Maarten Wetselaar, CEO of Cepsa, stated: "This alliance makes the Green Hydrogen Corridor a tangible reality and increases the international potential of the Andalusian Green Hydrogen Valley, allowing green Hydrogen produced by Cepsa in southern Spain to be used for industry and shipping in northern Europe. Partnerships like these are examples of the collaboration needed across Europe to ensure energy security without jeopardising climate targets, and the important role that Cepsa, and Spain, can and must play in this journey."

Egbert Vrijen, project director ACE Terminal, stated: "We are delighted that Cepsa has stepped forward and has chosen ACE Terminal. We hope that in addition to Cepsa, more parties will join our open access Ammonia/Hydrogen import terminal in the port of Rotterdam."

The Port of Rotterdam is the most important energy port in Europe. At 13%, it handles a significant portion of the continent's energy demand. On the other hand, Algeciras Port in Spain is first of its kind in the country and fourth in Europe. It serves as an essential pathway for trade between Europe and Asia.

As green Hydrogen becomes increasingly widely sought-after in Northwest Europe, local production of sustainable sources will not be able to meet the demand – hence, importing green Hydrogen on a colossal scale will be necessary.

Cepsa has been a leader in international sustainable energy and mobility for over 90 years. With its unmatched technical expertise, the company continues to move towards more sustainable operations in the chemicals industry.

Cepsa is setting the standard in energy transition with Positive Motion: its new strategic plan for 2030. The ambitious plan aims to make Cepsa a leader in sustainable mobility, biofuels and green Hydrogen in Spain and Portugal, as well as placing customers at the centre of its operations. With this new strategy, Cepsa is helping its customers reach their decarbonization goals by 2022.

Cepsa is taking action to meet its net positive goal by being inspired by ESG criteria. Over the course of this decade, Cepsa aims to reduce its Scope 1 and 2 CO2 emissions by 55% and the Carbon intensity index of its products by 15-20%. The company's long-term target is to reach a point of net zero emissions by 2050.

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