Capital Energy gains approval for 200-MW hydrogen project in Spain, targeting large-scale green hydrogen and ammonia production with renewable energy.
Capital Energy has obtained environmental clearance for a 200-MW electrolysis project planned in northern Spain, marking a significant step forward in its green hydrogen ambitions. The renewable energy developer intends to build the facility in the industrial park of the small town of Baltanás, located in the Castile and León region. With the approval now in place, the company has been granted a five-year window to complete construction, provided it adheres to the conditions and regulatory requirements outlined in the environmental permit issued by regional authorities.
The proposed plant will rely on alkaline electrolysis technology to generate hydrogen with a very high purity level of up to 99.999%. This advanced process uses electricity to split water into hydrogen and oxygen, enabling the production of clean hydrogen when powered by renewable energy sources. According to official documentation accompanying the approval, once fully operational, the project is expected to produce approximately 27,720 tonnes of green hydrogen annually. In addition to hydrogen, the facility will also manufacture around 155,960 tonnes of green ammonia each year, supporting broader decarbonisation efforts across industrial and energy sectors.
A key aspect of the project is its reliance on renewable electricity to power the electrolysers, ensuring that the hydrogen produced qualifies as “green.” However, the environmental permit does not specify the exact source of this renewable power, leaving Capital Energy to secure supply arrangements separately. The plant’s electricity demand is projected to reach roughly 1,290 gigawatt-hours per year, reflecting the energy-intensive nature of large-scale hydrogen production.
Water usage is another important consideration for the Baltanás project. The facility is expected to consume nearly 350,000 cubic metres of water annually, which will be required for the electrolysis process. While a portion of this demand will be met through water sourced from a nearby wastewater treatment plant, the company will also need additional water resources. Notably, the environmental approval does not automatically grant rights to extract groundwater. To address this, Capital Energy has submitted a separate application for water extraction to the Duero River Basin Authority, as confirmed by the regional government in response to public consultations and feedback during the permitting process.
The project represents a broader push by Spain to position itself as a leader in green hydrogen production, leveraging its abundant renewable energy potential. Developments like the Baltanás facility are expected to play a crucial role in reducing carbon emissions, supporting industrial transformation, and strengthening energy security. By integrating hydrogen and ammonia production, Capital Energy aims to contribute to the creation of a sustainable energy ecosystem that can serve both domestic and export markets.
Overall, the environmental approval marks an important milestone, but several steps remain before construction begins. These include securing water rights, finalising energy supply arrangements, and meeting all regulatory conditions. If successfully implemented, the project could become a key component of Spain’s emerging hydrogen economy.
