Repsol freezes green hydrogen projects in Spain

A spokesperson for Spanish oil giant Repsol said that the unfavourable regulatory climate has forced it to put on hold plans to build green hydrogen plants in Spain, with a capacity of 350 Megawatts (MW).

The company warned of the potential impact on its investment that regulatory uncertainty could have, such as the possibility that the windfall tax for energy companies and banks would be redesigned or made permanent.

Repsol's decision to produce 12 gigawatts of green hydrogen by the end decade could have wider implications for Spain's green agenda.

The project, which was to have a capacity of 100 MW in Cartagena with an investment of over 200 million euros (217 million dollars), has been put on hold. Other projects, including those in Tarragona with 150 MW, and in the Basque Country with 100 MW, were also put on hold.

Repsol's spokesperson confirmed that the next electrolyser would be manufactured in Portugal.

Green hydrogen, or hydrogen produced from renewable electricity, is considered a key element in decarbonizing Europe's economy. Green hydrogen projects are generally not competitive because of their cost.

(source: Reuters)