In a strategic move toward greener energy, Cesa has entered an agreement with a publicly traded firm to advance green hydrogen and water recycling initiatives in southern Spain.
The collaboration involves Campo de Gibraltar, represented by Arcgisa, focusing on using recycled water from industrial facilities to support the production of green hydrogen. This step forms part of a broader plan to establish what Cepsa describes as Europe’s largest green hydrogen project. The initiative signals a major investment of 3 billion euros aimed at accelerating Spain’s transition to low-emission energy and supporting regional economic growth in Andalusia.
To ensure a reliable supply of renewable electricity for the hydrogen production process, Cepsa will build a robust portfolio of wind and solar projects totaling 3 gigawatts. This expansion is paired with a separate capital commitment of 2 billion euros. The company also intends to collaborate with other renewable energy developers across Andalusia and throughout Spain to ensure seamless integration of these new power plants into the national grid, enhancing grid stability and energy security for the region.
The project aligns with Cepsa’s 2030 strategic plan, which envisions Spain emerging as a leading energy hub and contributing to Europe’s energy independence. Two green hydrogen production plants are planned in Palos de la Frontera in Huelva and San Roque in Cádiz, with a combined capacity of two gigawatts. These facilities will help diversify energy sources, reduce reliance on fossil fuels, and support hard-to-decarbonize sectors with clean hydrogen for industrial and power applications.
From an environmental perspective, the European Union highlights that employing urban water for industrial uses can cut drinking water consumption by about 5 percent. In line with its sustainability commitments, Cepsa aims to lower freshwater withdrawals in water-stressed areas by 20 percent by 2025, compared with 2019 levels. If achieved, these savings would exceed three million cubic meters of fresh water annually, underscoring the company’s emphasis on responsible resource management.
The new treatment facility will include tertiary treatment stages that prevent the discharge of wastewater into the sea and enable reuse within Cepsa’s operations. Annual wastewater reuse is projected at around 4.2 million cubic meters, an amount comparable to fulfilling the annual water needs of more than 21,000 average households. This milestone highlights the practical benefits of circular water management and the potential to redefine local water use patterns in the region.
During the project’s unveiling, Rosero Rivero, head of the San Roque Energy Park, underscored Cepsa’s commitment to reducing its environmental footprint and to decarbonizing both its own activities and those of its customers. Rivero emphasized how the partnership will drive meaningful reductions in emissions while supporting regional energy resilience and sustainable industrial growth.
Mar Perrote, Cepsa’s Director of Security, Environmental Protection, and Quality, noted that the company will mobilize its full spectrum of technological and innovative capabilities to repurpose municipal waste in the region. The goal is to shift from a linear model to a circular economy approach, turning waste streams into valuable resources and reducing the environmental burden on local ecosystems.
Beyond the water supply agreement, Cepsa is dedicated to advancing circular economy actions related to urban waste managed by Arcgisa. These efforts are designed to improve material recovery, minimize waste generation, and foster sustainable practices across the supply chain while supporting community well-being and environmental stewardship.