Energy Transition
By
Leigh Collins
![](images/images_02_18_2022/pic1.jpg)
‘Green hydrogen is now
competitive with fossil fuels’ |
ArcelorMittal among offtakers at massive 7.4GW project in Spain
HyDeal España, the first part of the
67GW HyDeal Ambition plan, will produce renewable H2 from 9.5GW of
solar power and create an industrial hub to decarbonise steel,
fertiliser and other products
A new 7.4GW renewable H2
project has been announced in Spain that largely solves this problem,
by including two major industrial consumers — steel maker
ArcelorMittal and fertiliser producer Fertiberia — among the
developers.
HyDeal España — the first
part of the
67GW HyDeal Ambition project that spans Spain, France and
Germany — will use 9.5GW of solar energy to power 7.4GW of
electrolysers that will split water molecules into hydrogen and
oxygen. And the 330,000 tonnes of H2 produced each year
will be supplied to a new industrial hub in the Asturias region,
northern Spain, and bought by ArcelorMittal and Fertiberia (and other
companies yet to join the project).
“The direct connection of
mass-scale renewable hydrogen production and long-term bankable
consumption create enormous value for the system,” said ArcelorMittal
in a statement.
HyDeal España, a joint
venture between Spanish gas grid operator Enagás, ArcelorMittal,
Fertiberia and Spanish project developer DH2 Energy, will begin
production of 200,000 tonnes annually by 2026, reaching full capacity
by 2030, when it would reduce Spain's annual greenhouse gas emissions
by 4%.
“We bring a historic message
to all energy users: green hydrogen is not just about small and local
expensive projects. It is now a full-fledged commodity, able to
compete with coal, oil and natural gas in both costs and volumes, the
perfect weapon at scale against the climate crisis and skyrocketing
energy prices,” said Thierry Lepercq, the chief executive of DH2, who
initiated the HyDeal projects.
“The world has changed in
the past six months with the rise in gas and power prices,” he told
Bloomberg, adding that the group hopes to secure several billion euros
of financing by the summer to cover the costs of the first phase.
Javier Goñi, CEO of Grupo
Fertiberia, said: “Based on HyDeal España competitive green hydrogen,
the company will invest in a state of the art highly flexible green
ammonia plant to cover the needs of our Avilés fertilizer site.
“This strategic development
is another step to position Grupo Fertiberia as the fastest and most
aggressive crop nutrition company to decarbonize, enabling to build
for our clients the greenest product portfolio in the industry.”
ArcelorMittal announced
plans last year to revamp its facilities in Gijon, northern Spain, to
produce green steel.
Today, most new steel uses
highly polluting coal to remove iron from iron ore, but hydrogen can
also perform this role. And almost all ammonia-based fertiliser is
currently produced by combining nitrogen from the air with hydrogen
from unabated natural gas or coal.
“HyDeal España is a
strategic alliance for ArcelorMittal which will give it access to the
volume of green hydrogen required in order to progress on its roadmap
towards the decarbonisation of steel production," said ArcelorMittal
Spain chairman José Manuel Arias.
“Thanks to the integration
of a group of companies and to the effect of economies of scale,
HyDeal España will be able to offer a supply, in competitive
conditions, of hydrogen obtained using renewable energy sources, which
will be key to enabling us to achieve our 50% CO2 emissions
reduction target in our Spanish operations by 2030.”
Green Play Ammonia™, Yielder® NFuel Energy.
Spokane, Washington. 99212
www.exactrix.com
509 995 1879 cell, Pacific.
Nathan1@greenplayammonia.com
exactrix@exactrix.com
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