Endesa and Cepsa Join Forces to Promote a Green Hydrogen Megaproject in Andalusia

Endesa and Cepsa, together with the IQE group, have signed an alliance to promote a green hydrogen project in Andalusia, linked, however, to receive European funds for its development, according to a presentation submitted by the electricity company to the National Securities Market Commission (CNMV).

Specifically, the project would be based on the supply to Cepsa of green hydrogen for its refineries and petrochemical plants in Huelva and Algeciras to replace natural gas consumption with this energy. The project, still in an embryonic phase, would start first in the refinery of Algeciras, sources of the sector indicated to Europa Press.

Thus, this alliance could mean for the region of Andalusia to become a reference in the development of hydrogen due to its geostrategic situation. In addition, the project, if promoted by the European funds, would contribute to the development of Andalusia, a region very affected by the high levels of unemployment.

Last October, Cepsa announced the change of leadership at the top of the company as of January 1st, 2022, with the appointment of the Dutchman Maarten Wetselaar as the new CEO, who will replace Philippe Boisseau. With this change at the helm of the oil company, the group also plans to launch what will be its new strategic plan.

Read more about the agreement between Endesa and Cepsa to promote a green hydrogen project in Andalusia and find the latest business headlines of the day with the Born2Invest mobile app. Our companion app is available for free for both Android and iOS devices and keeps its readers up to date with the latest market updates.

Endesa will invest 31 billion up to 2030, an increase of 22%

In addition to this alliance with Cepsa, Endesa has another, also linked to obtaining European funds, for decarbonization projects through green hydrogen with the IQE group (Industrias Químicas del Ebro).

Endesa has a portfolio of projects and plans that aims to mobilize a total of $26 billion (€23 billion) from the Recovery, Transformation, and Resilience funds, spread over a total of 122 projects.

By type, most of this investment capacity to be mobilized by the energy company would be allocated to renewable projects, with $9.2 billion (€8.2 billion); followed by storage and flexibility $5.14 billion (€4.56 billion); smart grids $4.2 billion (3.72 billion), of which $2.86 billion (€2.54 billion) are allocated to grid automation and $1.35 billion (€1.2 billion) to operational improvements); renewable hydrogen $3.32 billion (€2.95 billion) and building refurbishment and efficiency $2.48 billion (€2.2 billion).

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(Featured image by Makalu via Pixabay)

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First published in elEconomista.es, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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