- Repsol suspends 350 MW green hydrogen projects in Spain.
- Projects include 100 MW in Cartagena ($217M), 150 MW in Tarragona, 100 MW in Basque Country.
- Spain aims for 12 GW green hydrogen capacity by 2030.
- Windfall tax uncertainty affects €16.5B in energy investments.
Project Suspension
Repsol has halted its green hydrogen projects in Spain, totaling 350 megawatts of electrolysis capacity, due to regulatory uncertainty. This decision highlights the challenges in large-scale green hydrogen investments and could affect Spain's green energy targets.
Project Details
The suspended projects include a 100 MW project in Cartagena, valued at $217 million, a 150 MW project in Tarragona, and a 100 MW project in the Basque Country. Repsol will now focus on its next electrolyzer project in Sines, Portugal.
Green Hydrogen Importance
Green hydrogen, produced using renewable energy, is crucial for decarbonizing Europe's economy. However, its production often depends on subsidies and incentives for economic viability. Spain aims for 12 gigawatts of green hydrogen capacity by 2030, and Repsol's decision may impact this goal and broader EU climate objectives.
Regulatory Challenges
Repsol's decision is influenced by Spain's windfall tax on energy companies and banks, which creates investment uncertainty. The potential redesign and extension of this tax have raised concerns among energy companies. Last year, Spanish oil companies warned that extending the windfall tax could jeopardize €16.5 billion in planned energy transition investments across Spain.
