Repsol Halts Green Hydrogen Projects in Spain Amid Regulatory Uncertainty

Repsol has paused its green hydrogen projects in Spain, including a 100 MW project in Cartagena, due to regulatory uncertainty. The decision could affect Spain's goal of reaching 12 GW of green hydrogen capacity by 2030.

Spanish oil giant Repsol has decided to put its ambitious green hydrogen projects in Spain on hold, citing an unfavorable regulatory environment. The company had planned to develop electrolysis capacity totaling 350 megawatts (MW), but concerns over regulatory uncertainty, including the potential redesign and permanence of an extraordinary tax on energy companies, have prompted Repsol to pause its investment in the burgeoning industry.

Key Green Hydrogen Projects on Hold

Among the projects affected is a 100 MW facility in Cartagena, which was set to receive more than 200 million euros ($217 million) in investment. Additional projects in Tarragona and the Basque Country, with capacities of 150 MW and 100 MW respectively, have also been paused. Repsol's decision to halt these projects could have broader implications for Spain’s ambitious green hydrogen goals.

Spain’s Green Hydrogen Goals at Risk

Spain aims to achieve 12 gigawatts (GW) of green hydrogen production capacity by 2030 as part of its decarbonization strategy. Repsol’s decision to halt its projects could challenge the country’s ability to meet this target. Green hydrogen, produced using renewable energy, is considered a cornerstone in Europe’s effort to decarbonize key industries. However, without subsidies, these projects remain financially unviable, raising concerns about the future of Spain's green energy ambitions.

Repsol's Focus Shifts to Portugal

While Repsol has paused its green hydrogen efforts in Spain, the company has confirmed that its next electrolyzer will be built in Portugal. This shift highlights the importance of a supportive regulatory environment for the success of green energy initiatives.