Cummins Inc (an American multinational that produces power generation products, among others) and Iberdrola (a Spanish multinational energy company) plan to develop one of the world’s largest electrolyser plants to produce green hydrogen in Castilla-La Mancha, Spain.
Both partners have agreed to large-scale hydrogen production projects in Spain and Portugal. They will also promote the electrolyser and green hydrogen value chain market in Iberia.
The potential site for the €50 million PEM electrolyser plant would be in the Guadalajara area of Castilla-La Mancha. The initial plant capacity would be around 500 MW/year, which would be expanded to over 1 GW/year, adding 350 new jobs. The facility, which would be spread over 22,000 square meters, is expected to open in 2023.
Cummins will also supply electrolyser to the 230 MW green hydrogen project in Palos de la Frontera (Huelva, Andalusia, Spain), which Iberdrola planned for the leading fertiliser producer Fertiberia. In addition, both partners are also collaborating on a hydrogen refuelling station in Barcelona, Spain. Cummins has deployed more than 600 electrolysers in 100 countries globally.
Castilla-La Mancha and Spanish governments support these projects and play a critical role in deploying the Spanish and European hydrogen strategies.
Iberdrola has submitted 53 hydrogen-related projects to the Next Generation EU program worth €2.5 billion with an annual production of 60,000 tonnes/year. Under this plan, the green hydrogen production capacity would be around 20% of the national target, ensuring that about 25% of the hydrogen currently consumed by Spain would not generate any CO2 emissions. Iberdrola operates 2,376 MW of wind power and photovoltaic capacities in Castilla-La Mancha.
Tom Linebarger, Chairman and CEO of Cummins, “Our partnership with Iberdrola will connect us with a major clean energy company and strategically positions us to be a European leader in green hydrogen production.”
Ignacio Galán, Chairman and CEO of Iberdrola, said, “This initiative will accelerate the production of green hydrogen in Spain and will create a new industry, the manufacturing of electrolyser systems, with high growth potential.”