Repsol announced its hydrogen strategy up to 2030, with the aim of becoming the market leader in the Iberian Peninsula and positioning the company as a relevant producer in Europe.
The company has announced investments in the entire hydrogen value chain that will reach €2.549 billion ($2.97 billion) by 2030.
Renewable hydrogen is one of Repsol’s strategic pillars to achieve zero net emissions by 2050. The company will use different technologies to reach its renewable hydrogen production targets, including electrolysis, biogas production, and photoelectrocatalysis, a proprietary technology being developing with Enagas as partner.
The company is the leading producer and consumer of hydrogen in Spain, having used this gas in its various businesses for decades. Its extensive experience throughout the entire value chain, as well as the synergies established between different uses of hydrogen, places the company in a privileged po-sition compared to other players.
Repsol is promoting the creation of large regional hubs focusing on renewable hydrogen with the aim of coupling the production and demand of this gas and thus achieving efficient ecosystems.
The company plans to scale up its green hydrogen production to 1.9GW of electrolysis equivalent, be-tween 2025-30, according to director of hydrogen, Tomas Malango.
“we conceptualize decarbonization not only as an environmental lever, but also as a financial and a business-oriented one. The hydrogen valleys are clear business opportunities for Spain,” Tomas Malango said.
Earlier this month, the company said it had produced its first batch of bio gas based green hydrogen — ten tonnes’ worth — at its Cartagena facility in southeast Spain.
Repsol said its green hydrogen investments are not expected to break even before 2025, but will then generate earnings (before interest, taxes, depreciation and amortisation) of €1.24 billion ($1.45 billion) in 2026-30 and €2.37 billion ($2.76 billion) in 2031-35.
Because Spain has the strongest solar irradiation in Europe, it is said to be the best place on the conti-nent to develop green hydrogen.
“If hydrogen is going to fly in Europe, Spain is going to be at the head of it and Repsol has the size, teams and capacity to make that happen,” said chief executive Josu Jon Imaz.