EU awards Eur42 million to 280-MW Spanish green hydrogen project

The EU has awarded a Spanish 280-MW green hydrogen project financing of Eur42 million, natural gas groups Naturgy and Enagas said Feb. 5.

The funds will be assigned from the EU's Innovation Fund to the La Robla project near Leon, which is to be built at the site of the former 655-MW Naturgy coal-fired plant that closed in 2020 and is due to complete its dismantling operation this year.

The new hydrogen plant, which will count green ammonia producer Fertiberia as a principal offtaker, has a targeted start-up date of 2026, according to Naturgy data. The plant is budgeted at Eur485 million and the CO2 saving is estimated at 430,000 mt/year.

The company could also build out as much as 670 MW of adjacent solar photovoltaic capacity nearby to feed the plant as well as a 20-MW lithium ion battery unit, according to plans presented in February 2023.

It did not say when a final investment decision might be taken.

Spain is targeting 11 GW of green hydrogen capacity by 2030 under its revised National Energy and Climate Plan.

Platts, part of S&P Global Commodity Insights, assessed the cost of producing hydrogen via proton exchange membrane electrolysis in Europe at Eur5.76/kg Feb. 2. (Netherlands , including capex), based on month-ahead power prices.