Cepsa revealed plans to invest over €3bn to build a 2GW green hydrogen hub, dubbed Andalusian Green Hydrogen Valley in southern Spain.

As part of the project, the Spanish energy company will develop two plants with a capacity of 1GW each. Put together, the plants will produce 300,000 tons of green hydrogen per year.

One of the plants will be located in Palos de la Frontera in Huelva province, next to the company’s La Rábida energy park. The other will be located at the firm’s San Roque energy park in Cádiz.

The Cádiz green hydrogen plant is expected to commence operations in 2027, while the facility at Palos de la Frontera is scheduled to be operational in 2026 and reach its full capacity in 2028.

The Andalusian Green Hydrogen Valley is expected to generate 10,000 jobs and contribute to decarbonise industry and heavy land, air, and maritime transport by reducing emissions of carbon dioxide by six million tonnes.

Spanish Prime Minister Pedro Sanchez said: “This investment will help Spain achieve its goal to become an energy exporting country, with the first European green hydrogen corridor between the Campo de Gibraltar and the Dutch Port of Rotterdam.”

In addition, the company has announced plans to invest an additional €2bn to develop a 3GW portfolio of wind and solar energy projects. The electricity produced will be fed to the two green hydrogen production facilities.

Cepsa CEO Maarten Wetselaar said: “The Andalusian Green Hydrogen Valley is a ground-breaking project whose 2GW capacity is 10 times bigger than the largest under construction in Europe today.

“This project produces green hydrogen at scale that can decarbonise industry, aviation, and heavy road and maritime transport in Europe, for Europe.”

Cepsa said that it has also inked an agreement with the Port of Rotterdam to develop the first green hydrogen corridor between southern and northern Europe to enable the export of green ammonia and methanol.