MADRID (Reuters) – Chinese electrolyser manufacturer Hygreen Energy said on Tuesday it and its partners would invest more than 2 billion euros ($2.21 billion) in green hydrogen projects in the southern Spanish region of Andalusia.
The plans include a new plant to produce electrolysers – which use electricity to split water into hydrogen and oxygen – and green hydrogen plants.
The electrolyser production factory will have a capacity of up to 5 gigawatts, depending on demand in Europe, and will initially focus on 5-megawatt electrolysers.
Andalusia is positioning itself as a green hydrogen leader in Spain and Europe, taking advantage of its abundant wind and solar power potential.
Green hydrogen is produced using renewable electricity. While it is seen as key to decarbonising Europe’s economy in the future, green hydrogen projects in general are not competitive without subsidies due to high costs.
($1 = 0.9059 euros)
(Reporting by Pietro Lombardi; Editing by Alexandra Hudson)
