Spanish Energy Company Cepsa and the Port of Rotterdam have signed a Memorandum of Understanding (MOU) to establish the first green hydrogen corridor between southern and northern Europe. It would create a green hydrogen supply chain between two of Europe’s main ports, Rotterdam and Algeciras.
“Northwest Europe uses far more energy than it can produce in a sustainable way,” said Allard Castelein, CEO of the Port of Rotterdam Authority. “We are therefore setting up multiple trade lanes for green hydrogen, together with exporting countries and private businesses all over the world. We expect that in 2050 some 20 million mt of hydrogen will flow through the port, of which only 2 million mt will be produced locally.
“Southern Spain, with its abundant space, sun, wind, and ports is a logical location to produce green hydrogen for both local use and export,” he added. “Setting up this trade lane between Algeciras and Rotterdam is a substantial contribution to Europe’s ambition to reduce CO2-emissions, as well as increase Europe’s energy independency and stimulate our economies.”
Cepsa plans to export hydrogen produced at its San Roque Energy Park near the Bay of Algeciras, through hydrogen carriers such as ammonia or methanol, to Rotterdam. The parties said Rotterdam is the most important energy port in Europe, handling 13% of European energy demand, while the Port of Algeciras is first in Spain, fourth in Europe, and an important trade route between Europe and Asia.
The trade lane is expected to be operational by 2027. Cepsa also intends to develop a similar supply chain from its La Rábida Energy Park in Huelva.
Cepsa plans to lead green hydrogen production in Spain and Portugal by 2030 with a production capacity of 2GW, half the current target set by the Spanish government, and to become a major player in Europe.
To generate the renewable energy necessary for its production, Cepsa said it will develop a portfolio of 7 GW of renewable, wind, and solar projects alongside working hand-in-hand with other renewable energy producers in Andalusia to promote the integration of these new plants into the electricity system.