Iberdrola and Cummins team up for Spanish green hydrogen
Spanish energy company Iberdrola is collaborating with US-based Cummins to deliver large-scale electrolyser green hydrogen projects in Spain and Portugal.
The two companies have teamed up to accelerate the growth of the hydrogen economy on the Iberian Peninsula and helping to promote the hydrogen value chain.
Read more: Iberdrola acquires 3GW project pipeline in Ireland
A site in Castilla-La Mancha, Spain has been selected for one of the world's largest electrolyser plants and Cummins' has invested at least €50 million into its construction. The plant is expected to have an annual output of around 500MW.
However, it could be scaled up to achieve over 1GW per year, according to a company statement.
The 22,000 square-mile plant is expected to commence production in 2023 and create at least 350 jobs, the partners announced.
Tom Linebarger, the Chairman and CEO of Cummins said Spain has potential as a leader in green hydrogen owing to its dynamic local environment. He hopes the partnership will strategically position his company and Iberdrola as global giants in the hydrogen value chain.
"We believe that this is just the start of our expansion into new markets, bringing new clean technology to customers, and supporting efforts to bring the European Union's Green Deal to fruition," he added.
As part of this alliance, the 230-MW green hydrogen project in Palos de la Frontera - that Iberdrola has planned for the leading fertilizer producer Fertiberia - will become a benchmark for large electrolysis projects.
Cummins is set to supply the electrolysers for the project, while both partners will collaborate on solutions for larger green hydrogen projects.
The pair are also working on a hydrogen refuelling station in Barcelona, which comes alongside another initiative to make the area a hub for green hydrogen.
Read more: Consortium hopes to "hydroenergise" Barcelona
Cummins' electrolyser infrastructure has been partially funded by the Spanish and local government, allowing them greater resources and more flexibility when delivering their projects.
Iberdrola's CEO Ignacio Galán says the project should help accelerate green hydrogen production in Spain and pave way for a new industry in electrolyser manufacturing, which reportedly offers high growth potential, he claims.
He added: "We continue to make progress in our ambitious plan to put Spain and Europe at the global forefront of this technology by reducing energy dependence and fossil fuel consumption while driving the country's economic and social revitalization.
"This joint initiative will contribute to the economic, industrial and quality employment development in the region and will reinforce its great innovative commitment to a decisive technology for the decarbonization of the industry.”
Iberdrola has submitted 53 hydrogen plants to the Next Generation EU project which would activate investments of €2.5 billion and represent 20% - 4.5GW annually - of Spain's annual hydrogen goal in the race to net-zero and ensures 25% of Spain's hydrogen consumption is carbon-free.
Read more: Plans laid out for Europe's green hydrogen future
In Castilla-La Mancha alone, the company operates 2,376 MW of renewable energy -wind power and photovoltaic-, which makes it the third autonomous community with the highest 'green' megawatts installed by Iberdrola in Spain.
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