International steel supplier ArcelorMittal has signed up to sponsor the green hydrogen joint venture (JV) HyDeal Espana, which plans to build 9.5GW of solar farms and 7.4GW of electrolysers in northern Spain by 2030.
The goal of the venture is to produce competitive hydrogen for industrial customers. Other sponsors of the initiative include Spanish gas TSO Enagas, fertiliser producer Grupo Fertiberia, and Madrid-based hydrogen specialist DH2 Energy.
ArcelorMittal and Fertiberia will be the off-takers, with plans to buy 6.6Mt of green hydrogen over 20 years to produce green steel, green ammonia and fertilisers. Hydrogen would be delivered to an industrial complex in the Spanish region of Asturias where both companies have facilities. Green hydrogen production is planned to start in 2025.
“We bring a historic message to all energy users: green hydrogen is not just about small and local expensive projects.''Thierry Lepercq, chairman of the joint venture and spokesperson for HyDeal Ambition.
“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,” commented Thierry Lepercq, chairman of the joint venture and spokesperson for HyDeal Ambition.
HyDeal Espana was officially incorporated at a JV in November 2021 after a one-year pre-feasibility study. It arose from the HyDeal Ambition alliance, which a group of 30 European companies established a year ago with a goal to bring the price of solar-made hydrogen to $1.70 per kg, including transmission and storage costs.
According to its sponsors, HyDeal Espana is the first concrete implementation of the HyDeal Ambition platform.