Spain-based energy and petrochemicals major Repsol S.A. and Portugal-based energy company, EDP Renewables (EDPR), have entered into a strategic partnership for driving the projects on renewable hydrogen energy in their respective countries. The companies have signed an agreement to develop hydrogen production facilities at Asturias and Basque in Spain, and Sines in Portugal.
The Abono project in Spain, dedicated to developing a hydrogen valley in Asturias, will be headed by EDPR while Repsol will be supervising the Basque Hydrogen Corridor project in Spain that will require the installation of an industry-scale electrolyzer for hydrogen generation. In Sines, Portugal, the produced green hydrogen will be utilized by Repsol’s facilities operating in the same location, and EDPR will be taking care of energy supplies.
The partnership lays the foundation for Repsol’s ambition to lead the green energy production in Europe by achieving a capacity of 552 MW by 2025 and 1.9 GW by 2030.
Renewable or green hydrogen is produced from the electrochemical splitting of water in an electrolyzer powered by renewable energy sources like wind and solar energy. Hydrogen energy is expected to revolutionize the transport and petrochemical industries with its net-zero carbon emission capability.
As per ChemAnalyst, the global demand for hydrogen is expected to grow at a healthy CAGR of around 5%, with major economies now diverting their efforts towards sustainable growth. The growing demand is expected to be met to a significant extent by hydrogen supplies from the planned projects. This collaboration is an important step towards achieving carbon-neutrality and fast-tracking the energy transition in various downstream sectors. This will also strengthen the positions of both companies in the energy market.