CEPSA Recognized for Andalusian Green Hydrogen Valley Initiative

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The Enerji Newspaper honored CEPSA in 2023, naming the Andalusian Green Hydrogen Valley as the most consequential European project to date. The initiative centers on a robust 2 GW electrolysis capacity aimed at producing green hydrogen at scale and accelerating the region’s energy transition for a cleaner future.

This award was presented during the second edition of La Noche de la Energía, a flagship industry event organized by El Periódico de la Energía. The ceremony recognizes standout efforts by companies, public administrations, and leaders across the Spanish energy sector.

Carlos Barrasa, representing CEPSA as Commercial and Clean Energies Director, expressed pride in the progress toward the Andalusian Green Hydrogen Valley. He highlighted a broad set of agreements across the entire value chain and noted plans to market more than 60 percent of CEPSA’s green hydrogen production by 2030. The remarks underscore the project’s strength, competitiveness, and the motivation to deepen investments in this energy vector as a central pillar of the region’s energy transition.

Green hydrogen is expected to drive decarbonization across CEPSA operations while supporting broader reductions in emissions from industry and heavy road, air, and sea transport. The energy vector will be deployed directly and through derivatives such as green ammonia and methanol, providing multiple pathways to curb emissions from production to end use.

The project contemplates a total investment near three billion euros and envisions two 1 GW plants located in Palos de la Frontera, Huelva, and San Roque, Cádiz. The Huelva facility will be established on CEPSA land near the La Rábida Energy Park in Palos de la Frontera, with operations planned to begin in 2026 and full capacity expected by 2028. The Campo de Gibraltar facility is slated to start in 2026 and reach full operation by 2027 within the San Roque Energy Park.

Within the Andalusian Green Hydrogen Valley, CEPSA also plans to build Europe’s largest green ammonia plant in San Roque, with an annual production capacity of up to 750,000 tons. The project requires approximately one billion euros of investment and is set to become operational in 2027.

Strategic collaborations are forming with major players across the hydrogen value chain, including Fertiberia, EDP, Enagás Renovable, and Alter Enersun. These partnerships aim to advance industry sustainability, attract new participants, and expedite the overall development of hydrogen within Andalusia.

The Andalusian Green Hydrogen Valley also seeks to position Andalusian ports as global leaders in supplying green fuels for maritime transport. An agreement with the Port of Rotterdam adds an international dimension by enabling the first green hydrogen corridor linking northern and southern Europe through the Rotterdam and Algeciras ports. To operationalize this corridor, CEPSA has formed alliances with European partners such as Yara Clean Ammonia, Gasunie, ACE Terminal, and GETEC, enabling green hydrogen and ammonia to reach customers across northern Europe.

The awards jury highlighted that this initiative aligns with the 2030 Agenda for climate action. It is expected to position Andalusia and Spain as a European energy hub capable of exporting energy, strengthening supply security, and contributing to the REPowerEU strategy.

Job Creation and Local Economic Impact

The development of the Andalusian Green Hydrogen Valley is projected to generate around 10,000 jobs, including about 1,000 direct roles. The project is anticipated to stimulate activity for more than 400 local small and medium-sized enterprises and boost industrial activity by providing access to affordable, sustainable energy close to production centers. Currently, Andalusia accounts for nearly 40 percent of Spain’s hydrogen consumption.

The region already hosts important industrial bases, and CEPSA aims to build alliances that boost competitiveness. The valley is envisioned as a hub connecting other players in the hydrogen value chain, including electrolyzer production, green fertilizer manufacturing, and hydrogen transport technology. Through these connections, Andalusia seeks to become a central node in Europe’s green hydrogen ecosystem.

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