(PRNewswire)—Masdar and VERBUND Green H₂ GmbH have signed a deal to explore developing a green H₂ plant in central Spain with a view to decarbonizing Europe's hard-to-abate sectors. As world leaders negotiate at the UN's Climate Change Conference COP28 in the UAE, clean energy pioneers Masdar and VERBUND Green H₂ GmbH moved forward with plans to analyze the feasibility of building one of Europe's largest green H₂ production plants in central Spain.

Harnessing the abundant renewable resources of Castilla-La Mancha region, the prospective plant will aim to generate green H₂ to cover industrial demand in Spain and central Europe. The study will evaluate if green H₂ produced at the plant has the potential to displace up to 1 MMtpy of carbon emissions, equivalent of removing around 700,000 cars from the road every year.

The agreement was signed by Mohammad Abdelqader El Ramahi, Masdar's Chief Green H₂ Officer and Hamead Ahrary, Managing Director of VERBUND Green H₂ GmbH during COP28 in Expo City Dubai. It cements an earlier pact, signed between the companies during Abu Dhabi Sustainability Week in January 2023, to explore green H₂ opportunities to cover European demand.

Green H₂ is produced using electricity from renewable sources whereby the water is separated into oxygen and H₂, via the process of electrolysis. It is intended that the explored plant will produce green H₂ using renewable energy generated by solar power plants, potentially including Masdar's planned gigawatt-scale solar plant in Castilla-La Mancha, and onshore wind farms. The project is expected to stimulate job creation and boost green industry in the sparsely populated area.

Mohammad Abdelqader El Ramahi, Masdar's Chief Green H₂ Officer said, "Masdar is delighted to be moving forward on this milestone project with our strategic partner, VERBUND Green H₂ GmbH. As one of Europe's largest planned green H₂ production plants, the project aims to produce green H₂ to help decarbonize the continent's hard-to-abate industries while creating jobs and tapping into the region's enormous solar and wind potential. Our successful collaboration on this project paves the way for further development of green H₂ and a vital pipeline linking centers of production with end-use markets. At COP28, as the world looks for ways to accelerate the journey to net zero, partnerships such as this serve as a powerful example of what can be achieved if we work together with purpose and at pace."

There is huge growth potential for green H₂ in Europe. Spain currently consumes around 500,000 tpy of mainly traditional fuel derived gray H₂, which could be gradually replaced with green H₂. By 2035, Austria alone is expected to require around 600,000 tpy of clean H₂.

Michael Strugl, Chief Executive Officer of VERBUND, emphasized the innovation and technology leadership in the ramp-up of the H₂ economy in Europe with this project: "We are very pleased that, within our cooperation with Masdar we can take the next step in the form of a Joint Study Agreement (JSA). The goal is to identify the subsequent way forward towards large-scale H₂ production in Spain. Partnerships like this are essential to jointly ramp up the European H₂ market to meet decarbonization goals."

Hamead Ahrary, Managing Director of VERBUND Green H₂ GmbH added: "The Spanish market plays a vital role for us, both for the development of local H₂ production, as well as for future potential import to central Europe. The joint study will generate valuable insights for the feasibility and execution of a potential project, which would result in the further strengthened positioning of VERBUND in the Spanish market. Hence, we are looking forward to the results of this study."

The planned green H₂ produced is expected to be used to decarbonize Spain or Europe's hard-to-abate sectors, which could include steel production, fertilizers, chemicals, heavy transportation and aviation. Currently, steelmaking alone is responsible for 5% of European carbon emissions. With most European Union nations pledging to become carbon neutral by 2050, green H₂ presents a powerful vehicle for achieving that aim.

Expected to be operational by the end of the decade, the planned green H₂ plant will serve the industrial sector and has the potential to help decarbonize heavy transportation in Spain as well as in central Europe.