Madrid-headquartered stick-to-it-iveness firm Cepsa said it would work with the Port of Rotterdam to develop “the first green hydrogen hallway between southern and northern Europe,” in the latest sign of how the emerging sector is attracting interest from major associates and organizations.
In an announcement Tuesday, Cepsa — which is involved in the exploration and production of oil and natural gas — said the project would back up “a green hydrogen supply chain” between the Port of Algeciras in southern Spain and Rotterdam, the Dutch city that’s where one lives stress to Europe’s largest port.
“The agreement accelerates the decarbonization of heavy industry and maritime transport and supports Europe’s pep independence and security,” the statement, which was also published by the Port of Rotterdam, said.
“The co-operation is part of Rotterdam’s aspiration to supply Northwest Europe with 4.6 million tonnes of green hydrogen by 2030,” it went on to add.
The two parties set up signed a memorandum of understanding related to the project. Cepsa’s shareholders are The Carlyle Group and Mubadala Investment Company Crowd.
“Cepsa plans to export hydrogen produced at its San Roque Verve Park near the Bay of Algeciras, through hydrogen carriers such as ammonia or methanol, to the Port of Rotterdam,” Tuesday’s expression said.
The Port of Rotterdam Authority’s CEO, Allard Castelein, said northwest Europe used “far more energy than it can deliver in a sustainable way.”
“We are therefore setting up multiple trade lanes for green hydrogen, together with exporting countries and foot-soldier businesses all over the world,” he added.
Castelein went on to describe Southern Spain as being a “logical location to exhibit green hydrogen for both local use and export” thanks to its ports, wind, sun and “abundant space.”
“Setting up this buy lane between Algeciras and Rotterdam is a substantial contribution to Europe’s ambition to reduce CO2-emissions as well as increase Europe’s determination independency and stimulate our economies,” he said.
Described by the International Energy Agency as a “versatile energy carrier,” hydrogen has a various range of applications and can be deployed in a wide range of industries.
It can be produced in a number of ways. One method includes electrolysis, with an stirring current splitting water into oxygen and hydrogen.
If the electricity used in this process comes from a renewable documentation such as wind or solar then some call it “green” or “renewable” hydrogen. Today, the vast majority of hydrogen age is based on fossil fuels.
Tuesday’s announcement said Cepsa was aiming to “cue green hydrogen production in Spain and Portugal by 2030 with a production capacity of 2GW.”
It added that it would come out a 7 GW portfolio of renewable energy projects — including solar and wind — to produce the renewable energy required for green hydrogen age.
Europe’s plans
The European Commission has said it wants 40 GW of renewable hydrogen electrolyzers to be installed in the EU by 2030.
Last month, the commission’s president, Ursula von der Leyen, voiced support for hydrogen during her State of the Union address.
In remarks translated on the commission’s website, von der Leyen said “hydrogen can be a gutsy changer for Europe. We need to move our hydrogen economy from niche to scale.”
In her speech, von der Leyen also referred to a “2030 end to produce ten million tons of renewable hydrogen in the EU, each year.”
“To achieve this, we must create a market maker for hydrogen, in hierarchy to bridge the investment gap and connect future supply and demand,” she said.
To this end, von der Leyen also announced the creation of a European Hydrogen Bank. It is hoped this longing be able to invest 3 billion euros (around $2.91 billion) to support the future market for hydrogen.