Spain has the right conditions to be a global leader in green hydrogen but the development of the industry is being hindered by the slow allocation of subsidies, Jorge Palomar, global hydrogen development director at Spanish renewable giant Iberdrola, said on Wednesday.
Alan Ripa, CEO of hydrogen project developer Accionaplug, agreed that subsidies are key to developing the nascent industry.
WHY IT IS IMPORTANT
Green hydrogen, produced using renewable energy, is seen as key to decarbonising Europe's economy in the future. However, given its cost, green hydrogen projects in general are not competitive without subsidies.
Iberdrola, Europe's largest utility, in March scaled back its green hydrogen ambitions by almost two-thirds after delays in getting funding for some projects it has already presented. This comes as it embarks on a three-year, $45 billion investment drive.
KEY QUOTES
"We are delaying, and this is one of the challenges," Palomar said at the Connecting Green Hydrogen Europe event in Madrid, referring to the allocation of subsidies for green hydrogen projects.
"Subsidies are necessary to boost an industry at the beginning," he said
"We need subsidies to scale up projects," said Accionaplug CEO Alan Ripa.
CONTEXT
Iberdrola is waiting for allocation of funds for an 800 megawatt project in Puertollano and Huelva that would allow to reduce carbon emissions of the local fertilizer industry, Palomar said.
BY THE NUMBERS
Iberdrola now expects to produce roughly 120,000 tons of green hydrogen a year by 2030, compared with a previous goal of 350,000 tons.
(Reuters, June 26, 2024)
