Iberdrola obtains EUR-88m loan for green hydrogen project in Spain

Spanish utility Iberdrola SA (BME:IBE) has secured an EUR-88-million (USD 96.7m) loan to finance its green hydrogen development in Puertollano, Spain, where it is building a solar-and-storage and electrolysis complex for the local fertiliser producer.

The group said on Monday that it will receive a EUR-53-million loan from the European Investment Bank (EIB) and EUR 35 million from Spanish lender Instituto de Credito Oficial (ICO).

The financing, certified as green according to the parties involved, will be used for the installation of a 100-MW solar PV farm, a battery with 5 MW of power and 20 MWh of storage capacity, and a 20-MW electrolyser. The whole project will involve an investment of EUR 150 million.

Some of the structures of the complex are already at the site in the industrial town of Puertollano. Iberdrola said back in December that the delivery of hydrogen storage tanks had started.

The Puertollano complex will produce green hydrogen for fertiliser producer Fertiberia, which will also off-take the by-product oxygen. Fertiberia will adapt its facilities to be able to use the hydrogen in the fertiliser production process and reduce the need for natural gas, according to Iberdrola.

Commissioning of the Puertollano green hydrogen plant is expected to occur some time in 2022.

(EUR 1.0 = USD 1.098)

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