- Cespa is working with the port of Rotterdam towards developing the first green hydrogen corridor.
- Von der leyen set a target to produce ten million tons of renewable hydrogen in Europe, each year.
- Castelein described Spain as the logical location for producing green hydrogen for both local and export use.
“We are going to work with the Port of Rotterdam to develop “the first green hydrogen corridor between southern and northern Europe,” said Madrid headquartered Cespa, in the latest sign of how the emerging sector is attracting interest from major companies and organizations.
Green hydrogen supply chain
“The project would establish a “green hydrogen supply chain” between the Port of Algeciras in southern Spain and Rotterdam, the Dutch city home to Europe’s largest port.” Announced Cespa, which is involved in the exploration and production of oil and natural gas, on Tuesday.
Rotterdam’s Statement
“The agreement accelerates the decarbonization of heavy industry and maritime transport while supporting Europe’s energy independence and security.”
“The collaboration is part of Rotterdam’s ambition to supply Northwest Europe with 4.6 million tonnes of green hydrogen by 2030,” the Port of Rotterdam said in a statement.
An agreement between the two parties for the project has been signed. Mubadala Investment Company Group and The Carlyle Group are Cepsa’s shareholders.
Hydrogen carriers
“Cepsa intends to export hydrogen produced at its San Roque Energy Park near the Bay of Algeciras to the Port of Rotterdam via hydrogen carriers such as ammonia or methanol,” according to the issued statement.
Multiple trade lanes
“Europe’s energy consumption is far greater than what it is capable of producing sustainably. As a result, we are establishing multiple trade lanes for green hydrogen with exporting countries and private businesses worldwide,” said Allard Castelein, CEO of the Port of Rotterdam Authority.
Energy independence
Castelein Further described Southern Spain as a “logical location to produce green hydrogen for both local use and export, due to its ports, wind, sun, and abundant space.”
“Creating this trade lane between Algeciras and Rotterdam contributes significantly to Europe’s ambition to reduce CO2-emissions, increase energy independence, and stimulate our economies.”
Versatile Energy Carrier
Hydrogen, described by the International Energy Agency as a “versatile energy carrier,” has a wide range of applications and can be used in a variety of industries.
Renewable hydrogen production
It can be made in a variety of ways. Electrolysis is one method, in which an electric current splits water into oxygen and hydrogen.
If the electricity used in this process is renewable, such as wind or solar, it is referred to as “green” or “renewable” hydrogen. The vast majority of hydrogen production today is based on fossil fuels.
Renewable energy projects
According to the announcement on Tuesday, Cepsa aims to “lead green hydrogen production in Spain and Portugal by 2030 with a production capacity of 2GW.”
It went on to say that it would build a 7 GW portfolio of renewable energy projects, including solar and wind, to generate the renewable energy needed for green hydrogen production.
Europe’s plans
Ursula von der Leyen, the commission’s president, supported hydrogen in her State of the Union address last month and said that “We hope to install 40 GW of renewable hydrogen electrolyzers in the EU by 2030.”
Hydrogen economy
“Hydrogen can be a game changer for Europe. We must transition our hydrogen economy from niche to scale, 2030 target of producing ten million tonnes of renewable hydrogen in the EU each year” said von der Leyen on the commission’s website
“To do so, we must establish a hydrogen market maker to bridge the investment gap and connect future supply and demand,” she said.
European hydrogen bank
Von der Leyen also announced the establishment of a European Hydrogen Bank to this end. It is hoped that this will be able to invest 3 billion euros (approximately $2.91 billion) to support the future hydrogen market.
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Source:- CNBC
