Repsol follows through on its stance, signaling a firm commitment to action as a significant financial push unfolds for green investments in Spain. The government, backed by PSOE and Sumar, has announced a consolidation of tax measures targeting banks and energy companies, unlocking about 1.5 billion euros to accelerate the shift toward low carbon initiatives. Shortly after the first hydrogen project opened, plans to build large-scale hydrogen production units at refineries were paused, with remaining efforts redirected toward strategic sites in Bilbao, Cartagena, and Tarragona. An eco-plant designed to convert urban waste into methanol is also slated for development in Tarragona, according to market insiders.
At the results presentation last Thursday, Repsol’s chief executive Josu Jon Imaz warned of potential delays if regulatory and fiscal frameworks lose stability, signaling that industrial plans in Spain could lag without a reliable policy environment. Emilio López Atxurra, head of Repsol’s Basque subsidiary Petronor, outlined concrete investments: a 100 MW hydrogen production electrolyzer planned for 2026 with an approximate investment of 200 million euros in Bilbao. The European Commission has recognized this as an strategic project of common European interest, strengthening the case for accelerated deployment of green hydrogen networks. In parallel, a prospective future plant adjacent to this effort aims to produce synthetic fuels, though details remain unannounced.
Market sources indicate that two additional large electrolyzers are planned around Repsol’s core refineries, with one project centered in Cartagena and another in Tarragona. The Cartagena initiative involves a consortium led by Repsol, with partners Enagás Renewables and Engie. This 215 million euro machine targets a generation capacity around 1,100 jobs across construction stages and is slated to begin operations in 2025. Some of the renewable hydrogen produced here will feed industrial decarbonization efforts across global markets, including Escombreras Valley and the nearby Repsol refinery. The Cartagena project has also earned IPCEI status from Europe, underscoring its strategic importance.
The second large electrolyzer planned in Tarragona envisions a 150 MW capacity led by Repsol in a consortium with Enagás Renewables, Iqoxe, and Messer. With a project value near 320 million euros, this initiative received 62 million euros from the Innovation Fund administered by the European Commission. It forms part of the Catalonia Hydrogen Valley and the Ebro Hydrogen Corridor, functioning as a regional hydrogen hub that will supply industrial customers, including Petrochemical Mast, with cleaner energy.
Green hydrogen development remains central for Repsol, which already operates as one of the earliest hydrogen producers and consumers in Spain. The company’s current output approaches 360,000 tons annually and serves about 60 percent of national demand, though most of this supply remains gray hydrogen produced from natural gas rather than renewable power. The company emphasizes that true decarbonization requires scaling renewable-powered production to replace fossil-based methods.
The El Morell facility, planned to recycle urban waste into feedstock, is also on hold amid the broader regulatory and investment review. The project aims to handle around 400,000 tons of non-recyclable municipal solid waste, producing methanol for use in circular materials and potential advanced biofuels. The investment is estimated at about 200 million dollars, approximately 750 million euros, and would be among the Iberian Peninsula’s first facilities of this kind. Nearby municipalities contribute roughly 220,000 tons of waste annually, creating a forward-looking supply chain for methanol production.
Repsol has come under greater scrutiny due to a tax policy adopted by the coalition government that targets energy companies. The levy reached 1.2 percent of national sales in 2022 and 2023, with last year’s payments around 444 million euros and projected to trend between 300 and 350 million euros in the coming year. The programmatic agreement between PSOE and Sumar to consolidate this tax has prompted Repsol to reassess future investments in Spain, though ongoing projects continue to advance.
Despite the stance, several investments remain on solid footing. A 2.5 MW electrolyzer recently commissioned at the Muskiz Basque refinery in Vizcaya is operational since October, and a 10 MW electrolyzer scheduled for 2025 will include a demonstration facility for synthetic fuels. These initiatives are described as already consolidated and in the realization phase, reflecting steady progress even amid policy debates.