Spain has raised its target for green hydrogen production capacity, reflecting confidence in an industry where some energy giants have scaled back due to high costs and uncertain demand.
The government has updated its strategy, setting a 2030 target of 12 gigawatts (GW) for electrolysers used in green hydrogen production, an increase from the 11 GW proposed in a draft last year, as detailed in an energy ministry document released on Monday.
An updated national energy and climate plan, which includes this new goal, is expected to be approved at a cabinet meeting on Tuesday.
This plan serves as a crucial roadmap for companies seeking to invest, establishing targets for energy efficiency and renewable resources, among other objectives.
Spain aims to become a European leader in green hydrogen—produced using renewable electricity—by leveraging its abundant sunshine and wind resources for clean energy generation.
The country has recently approved subsidies for large projects and is attracting interest from major investors, including the Chinese electrolyser manufacturer Hygreen Energy and Envision Group.
In contrast, several large energy companies in the region have reduced their targets or canceled low-carbon hydrogen projects, highlighting the challenges of an industry heavily reliant on subsidies.
While low-carbon hydrogen is considered essential for decarbonizing Europe’s economy in the future, it remains more expensive than hydrogen produced from natural gas.
On Monday, Shell postponed a blue hydrogen project in Norway, which involves natural gas and carbon capture, citing a lack of demand. Last week, Norway’s Equinor also canceled a similar planned project.
Earlier this year, Iberdrola, Europe’s largest utility, cut its green hydrogen targets by nearly two-thirds after facing delays in securing funding for certain projects.
Like many other European nations, Madrid missed the June deadline to submit its energy and climate plan to Brussels.
The updated plan is generally consistent with last year’s draft, maintaining a 32% emissions reduction goal, while adjusting other objectives, such as increasing the energy storage target to 22.5 GW, up from 22 GW.
To read more about Green Hydrogen Industry News, continue reading BioEnergyTimes.com
