12. April 2022 Meghan Sapp

European Investment Bank leads funding on Spanish green hydrogen

In Luxembourg, European Investment Bank (EIB), Instituto de Crédito Oficial (ICO) and Iberdrola last week announced an agreement aiming to support the decarbonization of the economy by producing green hydrogen for industrial use, thereby contributing to EU energy security. To this end, Iberdrola will receive 53 million from the EIB and 35 million from ICO, with both loans being certified as green financing. The funds will be used to develop a 100 MW photovoltaic plant, a 20 MWh battery and a green hydrogen production plant in Puertollano (Ciudad Real), Castilla-La Mancha (Spain), one of the largest plants in Europe. This is both organizations’ first joint green financing to develop green hydrogen.

The fertilizer industry close to the plant will be able to use the green hydrogen to replace grey hydrogen made with natural gas.

The project will generate renewable electricity and green hydrogen. Thanks to this the helping to drive a sustainable economic recovery and create jobs in Castilla-La Mancha. An estimated 300 jobs will be created during the implementation phase and the new plant will generate around 160 GWh of electricity a year, equivalent to the annual power use of 48,000 Spanish households. The electrolyze will be capable of producing 1,000 metric tons of green hydrogen per year.