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HyDeal Spain: the world's largest integrated renewable and competitive hydrogen hub

HyDeal Spain will be the first industrial implementation of the HyDeal Ambition platform in Spain and Europe, supplying renewable hydrogen for the production of green steel, green ammonia, green fertilisers and other low-carbon industrial products

  • HyDeal Ambition announced in 2021 its project to create an industrial ecosystem for the decarbonisation of our productive fabric based on the production, transport and consumption of renewable hydrogen.

HyDeal Spain, the first industrial implementation of the HyDeal Ambition platform, will become the world's largest renewable hydrogen giga-project, according to the classification made public by the International Renewable Energy Agency (IRENA)[1]. This initiative, driven by companies such as ArcelorMittal, Enagás, Grupo Fertiberia and DH2 Energy, was officially established as an industrial joint venture in November 2021 after a one-year pre-feasibility study, and will now lead to the development, financing and construction of a whole set of infrastructures for green hydrogen production and transportation in our country.

The first stage of the project will supply an important industrial complex located in Asturias, producing renewable hydrogen through electrolysis and at a competitive price compared to other fossil fuels thanks to solar plants located at different points in the northern half of Spain. Production is scheduled to start in 2025, and is expected to have a total installed capacity of 9.5 GW, which will supply electricity to 7.4 GW of electrolysis capacity by 2030.

ArcelorMittal and Grupo Fertiberia, along with other organisations that will join HyDeal Spain, will be the major buyers of this clean energy, with a plan to purchase 6.6 million tonnes of renewable hydrogen over the next 20 years, which would avoid 4% of Spain's current CO2 emissions. The buyers will therefore move ahead with the production of green steel, green ammonia, green fertilisers and other low-carbon industrial and energy products, positioning themselves as European leaders in their respective markets.

A sustainable and self-sufficient model for energy independence

HyDeal Spain will be a reality thanks to the development of a disruptive industrial and financial model, based on the integration of value chains, solar energy capture, industrial installation of electrolysers, deployment of dedicated pipelines for hydrogen transport and aggregation of energy demand. This will create a direct connection between large-scale renewable hydrogen production and its long-term cost-effective consumption, creating a sustainable system.

Thanks to this project, large-scale renewable hydrogen will sustainably replace fossil fuels in industry, energy and mobility, providing a safe, competitive and carbon-free energy production alternative. The contribution to energy independence will be another major benefit of this initiative, as HyDeal plans to supply the equivalent of 5% of the natural gas imported by Spain.

This platform thereby joins Spain's energy transition at an important turning point, generating new industrial opportunities and sustainable jobs in collaboration with the different local communities where it will have a presence. Furthermore, the project's objectives are aligned with the institutional ambition to make the country a global pioneer in clean energy production, in line with the European Green Pact and its "Fit for 55" target to reduce emissions by 55% by 2030.

Thierry Lepercq, chairman of the platform and spokesperson for HyDeal Ambition, explains: "HyDeal Spain is the first specific implementation of the green hydrogen model with a cost of €1.5/kg announced in February 2021. We are sending a historic message to all energy users: green hydrogen is not just about small, local, high-cost projects. It is now a complete product, able to compete with coal, oil and natural gas in both cost and volumes. It's the perfect large-scale weapon against the climate crisis and soaring energy prices".

Jose Manuel Arias, Chairman of ArcelorMittal, states: "HyDeal Spain is a strategic alliance for ArcelorMittal, which will give us access to the volume of green hydrogen needed to progress on our roadmap towards decarbonisation in steel production. Thanks to the integration of a whole group of companies and the effect of economies of scale, HyDeal Spain will be able to offer a competitive supply of hydrogen from renewable energy sources, which will be key to enabling us to achieve our goal of reducing CO2 emissions from our Spanish business by 50% by 2030. At the same time, other sectors of the economy will also be able to benefit from the potential offered by hydrogen as a clean and sustainable energy solution to decarbonise their own processes”.

Marcelino Oreja, CEO of Enagás, states: "Enagás is fully committed to the decarbonisation process and our participation in HyDeal Spain is a milestone due to its model characteristics, based on value chain integration and scale. With its extensive knowledge in energy grid management and hydrogen technology, Enagás will play an important role in this project, together with its partners, to build the world's largest future integrated renewable hydrogen hub. We are currently involved in more than 30 hydrogen-related projects throughout Spain, and HyDeal Spain is one of the most important ones."

Javier Goñi, CEO of Grupo Fertiberia, states: "Our participation in this ambitious alliance is a further significant step on our roadmap towards decarbonisation. Based on HyDeal Spain's competitive green hydrogen, we will invest in a new state-of-the-art and highly flexible green ammonia plant to meet the needs of our fertiliser factory in Avilés. As part of HyDeal, the Group's four large plants are already involved in projects to replace fossil ammonia with green ammonia in their production processes. This is undoubtedly another step towards positioning Grupo Fertiberia as the plant nutrition company that is most rapidly and intensively carrying out a decarbonisation process, which will enable us to offer our customers the greenest product portfolio in the industry."

Philippe Esposito, President of DH2 Energy, adds: "Green hydrogen will drive a disruptive paradigm shift to reduce global emissions and achieve climate neutrality and, at the same time, position Spain and its industry in the medium term as a major player among the world's leading energy producing nations. We are very proud to be part of this initiative that will contribute to position the Spanish industry in a very favourable competitive environment."

About HyDeal Ambition

HyDeal Ambition brings together visionary CEOs and entrepreneurs who share a determination to accelerate the energy transition. This initiative constitutes a complete industrial ecosystem covering the entire green hydrogen value chain (production, transport, distribution and financing) and is the result of 2 years of research, analysis and modelling, feasibility studies and contract design, with the aim of producing and distributing green hydrogen in Europe at a competitive price.

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