HyDeal España in Spain is the first industrial implementation of the Hydeal Ambition platform, which seeks to make green hydrogen a competitive fuel alternative.
The project will involve the development, financing, and construction of a range of infrastructure for the production and transportation of renewable hydrogen. An electrolyser giga-factory will also be built as part of the project.
With production slated to begin in 2025, the initiative is expected to achieve a total installed capacity of 9.5GW of solar power and 7.4GW of electrolysers by 2030.
The International Renewable Energy Agency (IRENA) has classified HyDeal España as the world’s largest giga-scale renewable hydrogen project.
It is backed by investors including the European Investment Bank along with other banks structuring the debt side of the project.
After the completion of a one-year feasibility study, HyDeal España was officially incorporated as an industrial joint venture (JV) in November 2021.
It will deliver green hydrogen to an industrial complex in Asturias from facilities located in Northern Spain.
The anchor sponsors of the initiative are ArcelorMittal, Enagás, Grupo Fertiberia and DH2 Energy.
ArcelorMittal and Grupo Fertiberia, along with other large hydrogen clients, will also buy the green hydrogen produced from the initiative.
The companies plan to purchase 6.6 million tonnes of renewable hydrogen over 20 years to produce green steel, green ammonia, green fertilisers, and, other low-carbon industrial and energy products.
The project is expected to produce about 150,000 tonnes of renewable hydrogen per year from 2026. The production is expected to more than double up to 330,000 tonnes by 2030.
HyDeal España seeks to achieve a cost advantage by developing an industrial and financial model that involves value chain integration, solar power, electrolyser industrialisation and dedicated hydrogen pipelines.
HyDeal España has contracted Técnicas Reunidas, VINCI Construction, PowerChina Guizhou Engineering to deliver the technical design, architecture, and supply chain of its first hydrogen plants. The companies will also be supported by TSK to help in producing competitive fuel.
Based on pre-agreed engineering, procurement and construction (EPC) cost targets, these companies will design solar-to-hydrogen systems to produce renewable hydrogen.
After the completion of the basic design phase, HyDeal España will validate the final EPC companies responsible for carrying out the Design Engineering Project (FEED) and subsequent project execution (EPC).
HyDeal España will supply green hydrogen to Grupo Fertiberia’s Avilés plant. The supplies will be used to produce green ammonia.
The renewable hydrogen supplies will also help ArcelorMittal to decarbonise steel production. The multinational steel manufacturing corporation aims to halve carbon dioxide emissions from Spanish operations by 2030.
The green hydrogen will be transported through a new specific gas network that will follow the same route as the existing natural gas network.
HyDeal Ambition is an industrial consortium of 30 entities across the hydrogen value chain including upstream, midstream, downstream and financers. It aims to establish a capacity of 95GW of energy via solar power plants, and 67GW of electrolysis capacity by 2030.
The multi-country infrastructure will ensure the delivery of 3.6 million tonnes of green hydrogen annually. The produced green hydrogen will be supplied to consumers from the energy, industrial, and mobility sectors supporting Spain's transformation to green energy.
The platform seeks to produce green hydrogen at the cost of €1.5/kg (€38/MWh) excluding transmission and storage costs. This will enable delivering a zero-carbon energy alternative that is cheaper than natural gas prices in Europe.