Extremadura: why it’s set to become a flagship community for green hydrogen in Spain

4 June, 2025

It’s Extremadura’s turn in our series devoted to the Spanish autonomous communities’ green hydrogen strategy. It strives to produce 20% of the green hydrogen due to be generated in Spain by 2030. 

To achieve this goal, the Government of Extremadura will seek to develop 2.4 gigawatts (GW) of electrolysis out of the total of 12 GW projected by the Government in the 2023-2030 PNIEC (National Integrated Energy and Climate Plan). The region will thus become one of the main producers of this energy in Spain, as is currently the case with photovoltaic energy.  

 The plan envisages an estimated €10 billion investment and the creation of over 2,500 direct jobs.  

The perfect region to foster the renewable hydrogen value chain

Extremadura is the perfect region to consolidate renewable hydrogen as a key energy vector. Most importantly, there is a significant opportunity, not only in the primary generation phase, but also for the technological and industrial development of the value chain of this energy source. 

Extremadura strives to develop 2.4 GW of electrolysis out of the total of 12 GW to be developed in Spain by 2030

As a result of this potential, the Extremadura Green Hydrogen Board was set up in 2021 as a multi-disciplinary body with a presence in different public and private entities. Its objectives include attracting and locating the value chain in Extremadura and fostering projects to develop this technology. In this regard, Extremadura detected an opportunity to develop the value chain of this energy vector in rural areas, particularly in those most affected by population loss.

Green hydrogen projects in Extremadura undertaken by Enagás

One of the two core pillars of the national hydrogen network included on the initial list of Important Projects of Common European Interest, the Vía de la Plata Axis and the Puertollano Connection, among the country’s most ambitious commitments to the energy transition, runs through 51 municipalities in Cáceres and Badajoz. In total, it covers approximately 400 km, accounting for around 14% of the national green hydrogen network.

In Extremadura, the estimated length of the Vía de la Plata Axis is 280 km, virtually replicating the route of the existing gas network, while that of the Puertollano Connection is approximately 115 km.

One of the two core pillars of the national hydrogen network, the Vía de la Plata Axis, together with the Puertollano Connection, runs through 51 municipalities in Cáceres and Badajoz, covering over 400 km

Furthermore, the launch of the Public Participation Conceptual Plan (PPCP), recently submitted by Enagás, marks the beginning of a process to foster open dialogue with institutions, town councils, companies and the general public. The purpose of the plan is to compile inputs, resolve queries and ensure that the deployment of the infrastructure is environment-friendly and aligned with the region’s needs. This participatory process will take place throughout 2025 and 2026 and prove key to obtaining the necessary administrative authorisations.

Extremadura attracts interest from investors in renewable hydrogen

Several companies are undertaking green hydrogen projects in Extremadura, thereby consolidating the region as a benchmark during the energy transition. Some examples of the foregoing are listed below:

  • DH2 Energy, one of the most important players in the renewable hydrogen market, recently announced that four major projects will be deployed in the province of Badajoz, with a combined investment totalling €2.25 billion. These initiatives envisage 1.5-gigawatt electrolysis capacity and estimated annual production amounting to over 75,000 tonnes of renewable hydrogen.
  • Ansasol, a German company based in Andalusia, wishes to install approximately 500 MW of electrolysis capacity in Extremadura. There are a total of six projects, according to the census of the Spanish Hydrogen Association. Another significant project corresponds to Deutz Spain, which recently inaugurated a green hydrogen pilot plant in Zafra (Badajoz) that uses photovoltaic solar energy to produce green hydrogen.
  • Moreover, the AEMH2 project, led by the Ductolux-CIIAE consortium, is seeking to cut down on the cost of the technologies used to produce hydrogen. Its main objective is to improve anion-exchange-membrane water electrolysers (AEMWEs). The aim is to develop this technology to a more advanced level by improving the performance of the electrolysis cells and conducting laboratory tests with small units as practical demonstrators.
  • A Chinese company, Zijing International Energy Company Limited, has signed a memorandum of understanding with the Government of Extremadura to develop a green hydrogen production ecosystem in the region. The project includes the construction of two plants: a photovoltaic one with a storage system and a hydrogen one with hydrolysers. The project also envisages the deployment of 20 mobile service stations to supply hydrogen to tractors throughout Extremadura.

Together, all these projects and initiatives will consolidate Extremadura as one of the most dynamic and buoyant territories in southern Europe when it comes to developing green hydrogen. The region is laying the foundations for more than just an energy transformation, with a new economy based on sustainability, innovation and international cooperation.