Spain's oil company Repsol has approved the construction of a 100-megawatt green hydrogen project at its industrial complex in Cartagena, located in the east of the country. The company will receive EUR 155 million (USD 182 million) from the Spanish government toward the total investment of more than EUR 300 million required for the plant.

Project Approval and Timeline

The Cartagena Large-Scale Electrolyzer received approval as an Important Project of Common European Interest (IPCEI) from the European Commission in October 2022. Repsol had to take a final investment decision this year in order to remain eligible to receive the EUR 155 million government subsidy. The plant is expected to become operational in 2029.

Production Capacity and Use

Once operational, the project will produce up to 15,000 tonnes per annum of renewable hydrogen. Repsol stated that the renewable hydrogen from the project will be used as a “feedstock to manufacture essential products with a lower carbon footprint.” The company describes this final investment decision as “marking a significant step forward in its roadmap to replace conventional hydrogen with renewable hydrogen at its industrial sites.”

Scale and Partnership Structure

Repsol characterized the development of this electrolyzer as “a technological challenge led by Repsol, in collaboration with Enagas Renovable, which holds a 25% stake in the project.” The oil company stated it is the largest producer and consumer of hydrogen on the Iberian Peninsula, currently capable of producing around 360,000 tonnes per annum of hydrogen at its industrial complexes.

The Cartagena Large Scale Electrolyser will account for approximately 4% of Repsol's total hydrogen production capacity. Despite representing a relatively small portion of the company's overall hydrogen output, Repsol views the project as a significant advancement in transitioning from conventional to renewable hydrogen production at its industrial facilities.

Financial Investment Breakdown

The total project investment exceeds EUR 300 million, with the Spanish government contributing EUR 155 million through the IPCEI program. This government funding represents approximately 52% of the total project cost, demonstrating substantial public support for the green hydrogen initiative. The remaining investment will be covered by Repsol and its partner Enagas Renovable, which maintains a 25% ownership stake in the project.

The project represents one of the larger green hydrogen initiatives in Spain's energy transition efforts, combining significant private sector investment with substantial government backing to develop renewable hydrogen production capabilities at an industrial scale.

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