The era of green hydrogen in Spain: 10 keys to understanding the fuel of the future

The Government and the large Spanish energy companies such as Repsol, Endesa or Iberdrola have decided to bet on green hydrogen, which can turn Spain into an energy exporting country. Why now? Ten keys to understanding the fuel of the future.

1/ Hydrogen as fuel.

Hydrogen does not exist free in nature. To use it as a fuel you have to manufacture it by electrolysis: electricity is applied to water to separate hydrogen molecules from oxygen. This technology has been used for decades, but it is still expensive and ineffective.

2/Green?

Hydrogen bears the “surname” of the origin of the electricity used to make it: blue or gray (natural gas) and even black (coal). All of these produce CO2 when generated. Green is the one that uses renewable energies, such as solar or wind, as the origin of electricity.

3/Why now?

Decarbonization obliges. If the goal of zero CO2 emissions by 2050 is to be met, using hydrogen as a fuel can decarbonize sectors that are very complicated to electrify, such as airplanes or ships, in addition to the chemical and steel industries.

4/Europe is on time

Europe’s technology has lost a few technological battles, but green hydrogen is still so nascent that this race to make electrolyzers can be won.

China is going to launch one of 150 megawatts this February, powered by wind, while in Spain until 2025 it is not expected to have one of 100 megawatts, but it is not a notable delay. The key will be research to see who in the next decade gets more energy density out of a hydrogen molecule.

5/Environmental Advantages, all.

By making green hydrogen, water vapor comes out, zero CO2 emissions. In addition, the supply is secure, because hydrogen is conserved in both gas and liquid. Being able to be stored long-term and in large quantities, it facilitates the use of renewable energies.

6/Disadvantages: The cost.

Green is now 2.5 times more expensive than gray. Optimists believe that in ten years it could be competitive. It will depend on what progress is made in research, the price of the renewables used to manufacture it and the cost of competitors, diesel or natural gas, now skyrocketing.

7/How much hydrogen is produced now?

Very little. In Spain, 627,000 tons per year of gray hydrogen, which is used for the refining sector (in Repsol) and manufacturing ammonia. Seven million tonnes of hydrogen are used annually across Europe. By comparison, a single refinery like Petronor’s Biscayan processes twelve million tons of fuels annually.

8/Short-term goals.

According to the plans of the Ministry of Ecological Transition, the first objective has been to achieve an installed capacity of electrolyzers of between 300 MW and 600 MW by 2024, and 4 gigawatts by 2030.

At the rate that projects have emerged, the sector considers that it can be overcome: there are electrolyzers planned almost in each province, with large investments in Tarragona, Cartagena, Puertollano or Abanto (Bizkaia).

Even Iberdrola, an ally with CAF, and Repsol, with Talgo, have already presented projects for hydrogen-aided trains.

9/And this year?

All these projects aspire to the European funds that are going to be distributed this year, one of the keys to green hydrogen being fashionable, to the point that some speak of a bubble.

10/ Long-term

Europe aims for 12 percent of the energy consumed to come from green hydrogen by 2050. More than half, 52 percent, would be Spanish. With wind and sun pouring in to generate green hydrogen, if all goes well Spain could be an energy exporter by the middle of the century.

Source: The Energy Newspaper