European Chemical Industry News & Insights

Cummins and Iberdrola to Build Electrolyzer Plant in Spain

At a glance
  • Cummins is investing €50 million in a new electrolyzer plant in Castilla-La Mancha, Spain.
  • The facility will be 22,000 square meters and is expected to open in 2023.
  • The plant will produce approximately 500 MW/year, scalable to over 1 GW/year.
  • A 230-MW green hydrogen project in Palos de la Frontera will serve as a benchmark.

Investment and Location

Cummins Inc. is investing €50 million in a new electrolyzer plant in Castilla-La Mancha, Spain. The facility will cover 22,000 square meters and is expected to open in 2023, creating 350 new jobs as production ramps up. The plant will initially produce approximately 500 MW/year, scalable to over 1 GW/year.

Partnership and Projects

Cummins has partnered with Iberdrola to accelerate the growth of the electrolyzer market in Iberia. A key project under this alliance is a 230-MW green hydrogen facility in Palos de la Frontera, which will serve as a benchmark for large electrolysis projects. Cummins will supply the electrolyzers for this project, and both companies will collaborate on designing solutions for large-scale electrolysis.

Strategic Goals

This investment supports the European Union's Green Deal and aims to reduce greenhouse gas and air emissions from industrial sectors. The plant will also contribute to Cummins' goal of achieving carbon neutrality by 2050. Additionally, Iberdrola has submitted 53 hydrogen-related projects to the Next Generation EU program, aiming to activate investments of €2.5 billion and achieve an annual production of 60,000 tons of green hydrogen.

Regional Impact

In Castilla-La Mancha, Iberdrola operates 2,376 MW of renewable energy, including wind and photovoltaic power. The new electrolyzer plant and related projects are expected to fuel economic and job growth, contributing to the creation of approximately 4,000 skilled jobs across 500 local suppliers. This initiative will help position Spain and Europe at the forefront of green hydrogen technology.