Repsol Halts 130MW Green Hydrogen Project in Puertollano, Citing Technical and Economic Unfeasibility Amid Broader Strategy Recalibration
Key Insights
Repsol has canceled its 130MW Hydric green hydrogen project in Puertollano, Spain, after feasibility studies deemed it technically and economically unviable.
The project, which had secured €10 million in government funding, aimed to produce 4,500 tonnes of green hydrogen annually, scaling from a 30MW electrolyser.
This decision aligns with Repsol's recent reduction of its 2030 renewable hydrogen capacity target by up to 60%, reflecting market adoption uncertainties.
Despite the cancellation, Repsol affirms its continued commitment to hydrogen development in Puertollano through alternative, more viable routes for industrial decarbonization.
Repsol, the Spanish integrated energy company, has confirmed the cessation of its 130-megawatt (MW) Hydric green hydrogen project in Puertollano, Spain. The decision, made after comprehensive feasibility studies and preliminary engineering work, attributes the halt to the project's "technical and economic unfeasibility." This move signals a significant recalibration in the company's green hydrogen investment strategy, impacting Spain's nascent hydrogen economy.
The Hydric project, initially a collaboration with RIC Energy, which was to supply the necessary photovoltaic power, aimed to commence with a 30MW electrolyser, targeting an annual production of 4,500 tonnes of green hydrogen. Plans included a potential scale-up to 100MW in subsequent phases. Despite securing €10 million in government funding and initiating public consultations in Castilla-La Mancha, the project will not proceed to a final investment decision (FID). Repsol had been positioned as a primary offtaker for the green hydrogen produced.
A Repsol spokesperson reiterated the company's enduring commitment to hydrogen development within its Puertollano industrial complex, albeit through alternative pathways. "Repsol remains committed to the development of hydrogen projects in Puertollano," the spokesperson stated, emphasizing ongoing studies to identify "the most suitable hydrogen generation technologies for this complex." This strategic pivot underscores Repsol's focus on innovative projects that leverage diverse energy vectors to decarbonize its industrial processes and reinforce its leadership in circular economy practices within the region.
This cancellation is not an isolated incident but rather part of a broader reassessment of Repsol's hydrogen ambitions. Earlier this year, the company significantly curtailed its 2030 renewable hydrogen capacity target by up to 60%. CEO Josu Jon Imaz informed investors in February that the initial target of 1.9 gigawatts (GW) of installed renewable hydrogen capacity by 2030 had been revised downwards to a range of 700MW to 1.2GW. This adjustment reflects growing uncertainties regarding market adoption rates and the overall economic viability of large-scale green hydrogen production.
Puertollano, however, is poised to remain a critical hub for hydrogen-related industrial development. Notably, steelmaker Hydnum Steel plans to establish a 1.5 million-tonne hydrogen-based steel plant in the area between 2026 and 2029, indicating continued regional interest in hydrogen as a decarbonization vector despite individual project setbacks. Repsol's decision highlights the complex challenges, including technological maturity, cost competitiveness, and market demand, that large-scale green hydrogen projects face in achieving commercial viability in the current energy transition landscape.