In a bold move to steer its strategy toward decarbonization over the coming decade, the oil company plans to invest more than 3 billion euros to build two green hydrogen production facilities at energy parks in the United States. The plan also includes another 2,000 million euros to develop wind and photovoltaic renewable energy plants, designed to power interconnected industrial complexes.
Under the influence of the Abu Dhabi sovereign wealth fund, Mubadala, the group unveiled the Andalusian Green Hydrogen Valley project during an event in Algeciras. The announcement drew remarks from Spain’s government leadership and regional authorities, underscoring a milestone for the company’s 2030 strategy. The move positions the firm to expand its leadership in sustainable mobility and in the production of green hydrogen and advanced biofuels across Spain and Portugal.
Construction is a central pillar of the plan, with two green hydrogen production plants totaling 2 GW of capacity. The Huelva facility will be adjacent to the La Rábida Energy Park and is projected to begin operations in 2026, reaching full capacity by 2028. The Cádiz plant will be located at the San Roque Energy Park and is slated to start in 2027. To realize these green hydrogen efforts, the company intends to develop a portfolio of 3 GW of wind and solar energy, backed by an additional investment of 2,000 million euros.
Request for help to Sánchez
During the speech, Maarten Wetselaar, the CEO of the group, called on Sánchez and Moreno for support through incentives, a favorable legal framework, streamlined permitting, and faster processing. He warned that relying on success elsewhere could let competitors close the gap, especially as the United States offers tax incentives for green hydrogen investments. He emphasized the need for Europe and Spain to act with clear purpose to ease the energy sector’s tax burden, urging policymakers to align with the momentum in North American markets.
Wetselaar described the Andalusian Green Hydrogen Valley as a pioneering project with a 2 GW capacity, ten times larger than the biggest European project launched to date. The initiative aims to produce about 300,000 tons of green hydrogen annually, a figure that represents a significant share of Spain’s 2030 hydrogen production target. The company estimates that the project will spur substantial industrial employment in Andalusia, creating about 1,000 direct jobs and another 9,000 indirect roles, including positions in related sectors. Currently, around 40% of Spain’s hydrogen is consumed in Andalusia, suggesting that San Roque and Palos de la Frontera could become hubs for large-scale hydrogen developments.
Green fuels for ships
As part of the Andalusian Green Hydrogen Valley program, the region will push forward decarbonization efforts for Cepsa’s energy parks by producing advanced biofuels for aviation, maritime, and heavy road transport. Hydrogen is viewed as a key feedstock for producing green ammonia and methanol, which can be used as renewable marine fuels to power vessels and reduce reliance on fossil fuels.
The ports of Algeciras and Huelva stand as crucial export points for maritime traffic linking Northern Europe with Asia and Africa. Cepsa aims to position Andalusian ports at the forefront of international green hydrogen corridors and to supply new sustainable fuels for maritime transport. Notably, a green hydrogen corridor linking northern and southern Europe has already been established in collaboration with the Port of Rotterdam, marking a concrete step toward broader cross-border energy exchanges.
Spain is positioning itself prominently in the global race for green shipping. Maersk, the Danish shipping giant, has chosen Spain to support the decarbonization of its fleet, with plans for two future factories to be built in Andalusia and Galicia to produce green methanol for its fleet. This momentum suggests an investment potential reaching into the tens of billions of euros by 2030 as green fuel strategies mature.