Repsol cancels its green hydrogen plant in Puertollano due to its economic inability to operate
Repsol has canceled the green hydrogen plant project in Puertollano, Ciudad Real, after confirming its technical and economic unfeasibility. The plan was to produce more than 30,000 tons annually through electrolysis, but analyses have shown, to few surprises, that it was impossible to make it profitable.
The commitment to green hydrogen in Spain has just taken a hit. Repsol has decided to definitively cancel the project to build a green hydrogen production plant at the former La Sevillana thermal power plant in Puertollano, Ciudad Real.
The decision comes after the completion of technical and economic studies prior to the final investment, which concluded that the development of the plant is currently “unviable,” both economically and technologically. This effectively rules out one of the most ambitious initiatives for renewable hydrogen production in Castilla-La Mancha.
The project envisioned the production of approximately 30,911 tons of green hydrogen and 272,953 tons of oxygen per year through electrolysis, using renewable electricity. This hydrogen was to be transported via pipeline to Repsol’s refinery in Puertollano, a strategic complex within its industrial network. However, the cost of implementation and technological challenges have been insurmountable barriers at the present time.
Despite this setback, Repsol sources have emphasized that Puertollano remains key to its industrial strategy, and that it will continue to focus on innovation and the decarbonization of processes through other alternatives. Active projects include the biodiesel plant, the development of advanced polymers, chemical recycling, and new photovoltaic installations.
Repsol also reaffirms its commitment to the development of renewable hydrogen, albeit now under a more flexible approach, adapting the technologies to the specific industrial environment of Puertollano, which seeks to position itself as a hub for the circular economy.
Interestingly, Iberdrola’s green hydrogen plant (together with Fertiberia) has been operational in Puertollano since May 2022. This is Europe’s largest for industrial use, with an investment of €150 million. This project includes a 100 MW photovoltaic solar system, 20 MWh batteries, and a 20 MW PEM electrolyzer , with an annual capacity of 3,000 tonnes, which prevents the emission of between 48,000 and 78,000 tonnes of CO₂ according to estimates by the Spanish company.
One of the keys may be the use given to each facility. In Iberdrola’s case, the facility supplies hydrogen directly to Fertiberia for its green ammonia production, reducing the use of natural gas in its processes by up to 10%. In addition, byproducts such as oxygen and residual heat are utilized, with projects underway to channel this heat to the local hospital and reuse the oxygen industrially.
For its part, Repsol’s plan was to transport hydrogen via a hydropipeline directly to the Repsol refinery in the same town, in order to decarbonize industrial processes in the petrochemical complex.
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Repsol cancels its green hydrogen plant in Puertollano due to its economic inability to operate, source
