Electric utility Iberdrola has withdrawn two green hydrogen projects from Spain’s second national hydrogen auctions, with oil and gas firm Repsol submitting two bids for a combined €183.2m ($209m).
Iberdrola was selected to receive a €388.7m ($443.4m) in per kilogramme subsidies over 10 years for its two projects from Spain’s auction-as-a-service round, which allocated funding to projects that missed out on the EU-wide European Hydrogen Bank (EHB) auction.
Only one other project – a 30MW plant in Albacete by Doña Urraca Energy – was originally selected.
However, Iberdrola’s grant applications for the 80MW and 140MW projects were withdrawn on 15 July. No public reason was given for the withdrawals.
Following the withdrawals, Repsol’s planned 12.27MW Puertollano Hydrogen Network and 50MW Atlas electrolyser plant were moved up from an EHB reserve list.
Both projects aim to replace grey hydrogen used in Repsol’s Puertollano and A Coruña refining platforms. Puertollano could receive €49.8m ($56.8m) with subsidies of €2.25/kg ($2.57), while Atlas is in line for €133.4m ($152.2m) at €2.2/kg ($2.51).
Repsol’s promotion comes as the oil and gas firm agrees to sell a quarter of its oil and gas exploration and production business to US investment firm EIG for $4.8bn, as it looks to invest more heavily in renewables and green hydrogen.
It’s not the first hydrogen roll-back made by Iberdrola. In September, its ScottishPower subsidiary paused plans to develop UK green hydrogen projects, despite securing subsidies.
At the time, ScottishPower cited “challenging conditions” and a “limited route to market” for green hydrogen.
Iberdrola is currently commissioning a 25MW green hydrogen plant with BP at the British oil firm’s Castellón refinery. The Spanish government has also approved thereallocation of €211m ($239.5m) in subsidies to further expand the installation.
Spain remains one of Europe’s most ambitious green hydrogen markets, with aims to capitalise on abundant solar and wind resources, strong government policy, and a revised target of 12GW of electrolyser capacity by 2030.
It is positioning itself as a major domestic producer and future exporter through the cross-border pipeline project, the H2Med corridor.
