Repsol, Enagas, Engie push 100-MW electrolysis project in Spain

Spanish multi-energy group Repsol SA (BME:REP) is leading a three-party consortium that aims to build a green hydrogen electrolyser with an initial capacity of 100 MW in the region of Murcia, south-eastern Spain.

The two other members of the group are Spanish gas grid operator Enagas SA (BME:ENG) and French energy group Engie SA (EPA:ENGI), which co-signed a statement on Monday.

The trio said they had signed an agreement to advance the project in the industrial valley of Escombreras in Cartagena. The area is where Repsol operates a refinery, Enagas has an LNG terminal there, and Engie runs a combined-cycle power plant.

The electrolysis plant will be located close to Repsol’s refinery. The oil-and-gas major and other industrial entities in Escombreras intend to use the hydrogen in their processes. Enagas plans to inject hydrogen into the existing natural gas grid, while Engie will use it for heat, the partners said in the statement.

The companies expect the project to involve an investment of around EUR 215 million (USD 212m). The Cartagena proposal secured state aid as part of the EU’s IPCEI Hy2Use programme aimed at promoting large-scale hydrogen infrastructure development.

The consortium will spend the next year working on detailed engineering and permitting procedures. Construction is expected to commence in 2024, while the hydrogen plant could be operational in 2025.

(EUR 1.0 = USD 0.986)

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