© Repsol

Repsol has approved a €300m investment in a 100MW green hydrogen plant at its Cartagena industrial complex in south-eastern Spain, with operations scheduled to begin in 2029.

EU and Spanish government backing

The Spanish oil and gas group secured €155m in state support for the project after it was recognised by the European Commission as an Important Project of Common European Interest (IPCEI). The decision comes as Madrid pushes to expand its role in the EU’s hydrogen build-out, while Repsol seeks to gradually substitute fossil-based hydrogen used in refining and chemicals with lower-emission alternatives.

Scale and production targets

The Cartagena electrolyzer is expected to produce up to 15,000 tonnes of renewable hydrogen annually, equivalent to about 4% of Repsol’s current hydrogen consumption across its Iberian facilities. The company is the region’s largest producer and user of the gas, accounting for roughly 60% of Spain’s output and 4% of Europe’s demand.

Enagás partnership

Enagás Renovable, a subsidiary of Spain’s gas transmission operator, will hold a 25% stake in the venture. The developer said the project expands its portfolio of nearly 20 hydrogen initiatives in Spain, positioning it as a central player in the country’s nascent hydrogen market.

Cartagena as a hub for Repsol hydrogen strategy

Repsol described the final investment decision as a “significant step forward” in its strategy to decarbonise industrial feedstocks. It previously piloted turquoise hydrogen at the Cartagena site, producing 6.5 tonnes earlier this year using biomethane as a substitute for natural gas. That effort followed an initial trial in 2021 and was presented by the company as supporting biomethane demand and circular economy goals.

Repsol hydrogen projects face mixed outlook

The company’s commitment in Cartagena contrasts with a slowdown elsewhere. Repsol paused several other green hydrogen projects in 2024 amid concerns over costs and uncertain demand, underlining the challenges facing Europe’s broader hydrogen rollout despite substantial EU and national subsidies.

If completed on schedule, the plant will strengthen Spain’s role as a testing ground for large-scale hydrogen production and provide a reference point for investors and policymakers assessing the economic viability of industrial decarbonization projects.