Spain is positioning itself at the forefront of the transition to green hydrogen in Europe. Recently, BP has revealed its plans for the development of the largest hydrogen facility in the country. In addition, several Chinese investors are beginning to establish their presence in Spain through the construction of different facilities. In other words, the foundations for green hydrogen are being laid, which has led Red Eléctrica Española (REE) to seek an efficient organization of access to electricity demand in the face of this emerging situation.
In this article we are going to tell you how Spain bets on green hydrogen in its race for the energy transition, it is taking action to adopt a more renewable type of energy.
Spain bets on green hydrogen
Responsibility for managing the power grid falls to REE, which uses a network of essential points known as “nodes” to efficiently distribute and manage energy demand. As new energy sources emerge, including green hydrogen, and As the number of electric vehicle charging stations increases, existing capacity becomes inadequate. Consequently, competitions are launched so that new projects can request access and connection to the network.
The production of green hydrogen requires a continuous connection to the electricity grid, mainly due to the electrolysis process. To secure its allocation, a €40 deposit must be paid for each kilowatt used from the grid. In addition, new initiatives providing additional guarantees will be required if they incorporate energy storage or integrate multiple forms of renewable energy.
The abundance of wind and solar energy in Spain is causing an imbalance in the electricity grid. To address this problem, greater flexibility is required.
The challenge posed by infrastructure is significantThe problem is that existing infrastructure may be inadequate to accommodate all green hydrogen initiatives, primarily due to the need for electricity and its inability to meet additional demand.
However, projects that are components of larger initiatives, such as the Common Interest Project (PCI), which aims to facilitate financing and reduce bureaucratic complexities, still require careful consideration. Despite this assistance, it remains essential to assess and modify the electrical infrastructure to accommodate the anticipated increase in energy demand resulting from expansion in this region.
Investments in green hydrogen
Investments in green hydrogen are gaining significant momentum. Among the most ambitious efforts in Spain is H2Med, notable for its international implications. However, This initiative is not a solitary one. There are other projects, such as HyDeal, SHYNE and the hydrogen valleys located in Catalonia, Aragon and the Basque Country. Spain aims to establish itself as a leader in the production of green hydrogen.
The emergence of green hydrogen as a substitute for fossil fuels, including oil, gas and coal, is increasingly evident across the Spanish landscape. A significant effort is being made in renewable electricity and distribution, as The European Union plans to generate 10 million tons by referring to "Horizon 2030", together with an additional import of 10 million tonnes, in line with the decarbonisation targets set for 2050.
Illusory thinking
The concept of "wishful thinking" in this context refers to the tension between aspirations and realities, particularly within an increasingly complex global geostrategic landscape. The Elcano Royal Institute has published a document entitled 'H2 Med: geopolitical and geoeconomic factors and barriers to hydrogen in the Mediterranean', in which it highlights that "France is betting on self-sufficiency, Germany is betting on imports and the Mediterranean countries, including Spain, aspire to become exporters in the medium and long term".
We are therefore in a period of balance between optimism and uncertainty, as observed in the report 'Natural selection in green hydrogen', led by engineer and professor Marcos Rupérez, from the OBS Business School, who highlights the importance of caution and points out that the study speaks of "a bubble of expectations that is causing many projects to stagnate, while others have not even begun to be built."
According to the study, Hydrogen currently lacks competitiveness in all the sectors in which it aims to serve as an alternative. Existing subsidies are ineffective, not scaled appropriately and do not prioritise projects with the highest chance of success. The quota policy will ensure the survival of only those initiatives with a sound strategy and the most favourable relationship with the European Union. Furthermore, it is noted that “the transition from laboratories to the hydrogen industry has been so rapid and disruptive that the technology is not yet ready for cost-effective mass production.
Pending tasks
Addressing the challenges, which include, among others, the establishment of the necessary number of catalyst factories and the optimization of the technology, is necessary to ensure a successful initial phase. This is because Spain stands out in the European landscape for its strategic approach to addressing these challenges, characterized by long-term planning aimed at navigating in a highly important sustainability scenario. In this regard, The connection between Puertollano and Seville is now operationalIt is worth noting that Puertollano is the headquarters of the National Hydrogen Centre, which has recently launched the fourth edition of its 'Hydrogen Technology' course and has participated in the European Union-Panama collaboration meetings held in June to advance the green hydrogen economy.
Other possible options are corridors connecting Aragon with France, the Atlantic and the H2Med corridor, the deployment of which will favour the decarbonisation of all types of sectors, products and services, to which must be added the concept of "valleys", such as the H2 Valley of Asturias, Andalou, the Hydrogen Valleys of Western Asia or the Hydrogen Valley of Burgos, the most famous of which is Hiperbaric.
I hope that with this information you can learn more about how Spain is betting on green hydrogen on its path towards ecological transition.