The Spanish Government recently announced the investment of more than 1.2 billion euros to promote the development of hydrogen valleys in our country. In recent years, these ecosystems have emerged as a key solution for accelerating the energy transition, integrating production, distribution and consumption into a single industrial ecosystem.
Following the government’s investment in these solutions, it is appropriate to review the selected projects, which will help Spain position itself as a European hydrogen powerhouse and a benchmark country in the energy transition.
Just a few weeks ago, sixteen hydrogen valleys in Spain came together to form the Hydrogen Valleys Alliance. The main objective of the pact is to promote the renewable hydrogen value chain and the decarbonisation of the industrial and transport sectors, as well as to position Spain as a leading country in hydrogen within the European Union.
In each of the sixteen hydrogen valleys that have joined the Alliance, there are companies and organisations that are part of the hydrogen value chain. In total, more than 600 entities are currently involved in more than 300 projects related to renewable hydrogen.
In this context, the Spanish government has awarded 1.214 billion euros to seven projects under the Renewable Hydrogen Valleys programme. These projects are located in different autonomous communities such as Andalusia, Castilla y León, Aragón, Catalonia and Galicia. A total of 11 electrolysis plants are planned, with a total capacity of 4 gigawatts (GW). This commitment is expected to generate investments of 5 billion euros and create around 20,000 direct and indirect jobs.
The Government of Spain seeks to promote the development of hydrogen valleys to position our country as a reference in hydrogen within the European Union
Led by Moeve (formerly Cepsa), this ambitious project involves an investment of 4 billion euros to achieve an electrolysis capacity of 2GW and build Europe’s largest green ammonia and methanol plants in Cádiz and Huelva. The plants will have a combined electrolysis capacity of 2GW and produce up to 300,000 tonnes of green hydrogen per year. This project will boost the production of 2G biofuels (produced from organic waste) and by-products such as green ammonia and methanol, which will contribute to the decarbonisation of industry and heavy transport.
In Aragón, two initiatives have been selected to receive up to 384 million euros. These are the Catalina project in Andorra and HyBERUS in Caspe. These projects will generate a total of 860 MWe of power and will also have a social impact, creating hundreds of jobs during construction and operation.
Catalina is a project of Enagás Renovable, Naturgy, Fertiberia and Vestas with the Danish investment firm Copenhagen Infrastructure Partners (CIP). It involves the construction of a production plant with a 500 megawatt electrolyser to produce hydrogen from water. The first phase, scheduled for 2027, will produce 84,000 tonnes of hydrogen per year, rising to 336,000 tonnes from 2030.
The Catalina project will involve the construction of a production plant scheduled to come into operation in 2027, with an annual production of 84,000 tonnes
The Galician initiative selected is the so-called Hydrogen Valley in A Coruña, in which Armonia Green Galicia is participating through its subsidiary Ignis. This project will receive a grant of almost 130 million euros for the construction of two plants, one for the production of green ammonia in the outer harbour of Punta Langosteira and the other for the production of green hydrogen in A Grela.
The Repsol project will receive 40.8 million euros to produce green hydrogen through electrolysis, a process that uses electricity to separate hydrogen and oxygen molecules from water. It is currently in the engineering design phase. Once developed, Repsol will use an electrolyser and renewable electricity to obtain this green chemical element, which will be used to decarbonise its industrial processes in Galicia.
The green hydrogen valley in La Robla, the one in Villadangos del Páramo and the sustainable fuel production plant in Cubillos del Sil have been chosen to receive support from the Spanish government. This investment is an important milestone for the industrial future of León and the development of a decarbonised economy. These projects are also a driving force for the creation of quality jobs, attracting investment and consolidating the industrial fabric of León.
In Catalonia, two green hydrogen production projects in the Tarragona municipalities of Ascó and La Pobla de Mafumet will receive government support. A total of 236 million euros has been earmarked for the plants, which will require a total investment of 617 million euros.
The Ascó project, called HyBERUS, is being promoted jointly with the Aragonese municipalities of Caspe and Fabara. It will have a total electrolysis capacity of 360 MWe. The Mafumet project, called Tarragona Hydrogen Network (T-HYNET), is a project led by Repsol, Enagás Renovable and Messer to develop the largest electrolyser in Spain, with a capacity of 150 MW, located at the Repsol Industrial Complex in Tarragona.
It aims to produce 2.7 tonnes of renewable hydrogen per hour to supply local industry, reduce emissions and accelerate the energy transition. In December 2023, it received funding from the European Commission’s Innovation Fund, consolidating it as a key project for decarbonisation. As such, T-HYNET is integrated into the Hydrogen Valley of Catalonia and the Ebro Hydrogen Corridor, connecting to the European Hydrogen Backbone, the future European hydrogen transmission network, positioning Spain as a key player in the renewable hydrogen economy.
The hydrogen valleys of Andalusia, Aragón, Castilla y León, Catalonia and Galicia, among those chosen by the Government to develop its investments
While progress has been significant, challenges remain. The need to balance domestic supply and demand for green hydrogen is crucial to ensure the economic viability of projects. It is also essential to ensure that green hydrogen production is cost-competitive with fossil alternatives, which requires supportive policies and continued technological development.
Arguably, hydrogen valleys in Spain will experience remarkable progress in 2025, with significant investments and projects underway that promise to transform the energy landscape. However, to maximise its impact on the energy transition, it is essential to address existing challenges and foster close collaboration between governments, industry and the scientific community.
