Cepsa, Spain's second-largest oil company, announced it will delay €3 B ($3.25 B) in green H₂ investments if a temporary windfall tax on energy firms becomes permanent. The company, along with others like Endesa, has criticized the tax, which was implemented to address inflation-related cost-of-living issues.

Instead, Cepsa plans to focus on international expansion while committing to generate over half of its operating profits from sustainable activities by 2030. The government aims to make the tax permanent, which could jeopardize up to €16.5 B in energy transition investments, according to industry lobbyists.

Similarly, Repsol has paused its green H₂ projects due to a challenging regulatory environment. Green H₂, crucial for decarbonization, remains financially uncompetitive without subsidies.

Source: Reuters

For the original story, visit: https://www.reuters.com/sustainability/climate-energy/cepsa-delay-33-bln-hydrogen-projects-if-spains-windfall-tax-made-permanent-2024-10-25/