A national project: what green hydrogen is and why Spain is backing it

Spain, historically dependent on imported oil and gas, is now positioning itself as a leader in the emerging green hydrogen industry. With abundant solar power, strong wind resources, and ample space for renewable energy parks, Spain has the potential to become Europe's premier producer of green hydrogen.

Green hydrogen is a clean energy carrier, produced through the electrolysis of water using electricity from renewable sources like wind and solar. Unlike grey hydrogen, which is mainly generated from natural gas and emits CO2, green hydrogen does not produce greenhouse gases during production.

While hydrogen is not a primary energy source, it can be used to store and transport energy, particularly in sectors that are difficult to electrify directly, such as heavy industry, chemical production, and some maritime and air transport. It can also be converted into products like ammonia or synthetic fuels.

The Andalusian Green Hydrogen Valley in Spain, with its initial phase Onuba, is a significant step towards realizing this potential. The project, with an investment of over 1 billion euros, aims to produce 300 MW of electrolysis capacity initially, later expanding to 2 GW. This expansion could make Spain a major player in the green hydrogen market, both domestically and potentially exporting it to other European countries.

However, for Spain to become competitive in green hydrogen production, several challenges must be overcome. The cost of green hydrogen must fall to be more affordable than hydrogen produced from fossil fuels. This could be achieved through economies of scale, technological advancements in electrolyzers, and reductions in operational costs. The current high price of gas, coupled with the need to reduce carbon emissions, creates an environment where green hydrogen could become more competitive.