Hygreen Energy announced that, alongside its partners, it will invest €2bn ($2.2bn) in green hydrogen projects in the southern Spanish region of Andalusia.
The Chinese electrolyser manufacturer, which has a global manufacturing capacity of 2GW as of 2024, plans to manufacture and develop its hydrogen technology in the region in collaboration with Spanish energy utility Coxabengoa.
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By GlobalDataThe plans include the development of new green hydrogen plants as well as a plant to produce electrolysers.
With Hygreen’s funding, Coxabengoa aims to develop two hydrogen projects, one in Málaga for component manufacturing and another in Huelva for green hydrogen production. The electrolyser production factory will initially focus on 5MW electrolysers and is set to have a capacity of up to 5GW.
Juanma Moreno, the president of the Regional Government of Andalusia, commented: “This is a key commitment to Andalusia and an important step in a strategic sector.”
According to a report published by Power Technology’s parent company, GlobalData, Spain aims to achieve 74% electricity generation through renewables by 2030, with green hydrogen set to be a significant part of this objective.
In 2020, the Spanish Government introduced its Hydrogen Roadmap: A Commitment to Renewable Hydrogen, which allocated €1.5bn to develop the use and production of hydrogen.
Hygreen’s investment is expected to help develop Andalusia as a green hydrogen leader in Spain and Europe. The region is already well-positioned for this initiative due to its abundant wind and solar potential.
Green hydrogen projects are notoriously expensive to develop, requiring substantial investment and subsidies.
In July, the European Commission greenlit a €1.2bn Spanish scheme to bolster investments in renewable hydrogen production. Approved under the state aid Temporary Crisis and Transition Framework, the scheme is designed to support the establishment of hydrogen clusters or valleys that are integral to Spain’s transition to a greener economy.
