Repsol will build a 100MW green hydrogen plant to supply its Bilbao refinery, after securing funds from the country’s recovery and resilience plan.
Expected to be operational in 2029, the plant will produce up to 15,000 tonnes of green hydrogen annually for primary use at the Petronor refinery in Muskiz, outside of Bilbao.
The firm said it could prevent up to 167,000 tonnes of carbon dioxide emissions per year.
The €292m ($346m) project has already secured €160m ($190m) in NextGenerationEU funds from the Spanish Recovery, Transformation, and Resilience Plan, after being recognised as a Project of Common European Interest by the European Commission.
Despite reducing its planned green hydrogen production plans last year, it will add to Repsol’s large-scale green hydrogen development after installing a 2.5MW electrolyser at the Petronor refinery in 2023.
Last September, the firm approved the construction of a 100MW plant at its Cartagena refinery, also due online in 2029. It also plans to build a 150MW project in Tarragona.
The announcement comes amidst oil and gas players facing increasing pressure to double down on climate commitments, with the EU’s emissions trading scheme (ETS) financially penalising carbon emissions.
Repsol says the project represents a “first-class” technological challenge due to its scale.
It adds to Spain’s growing green hydrogen sector as the country aims to position itself as a European hydrogen hub, leveraging strong renewable resources, port infrastructure, and rising domestic demand.
In 2024, the government unveiled plans to see green hydrogen meet 74% of its industrial hydrogen demand by 2030 and treble its installed electrolyser capacity target to 12GW.