IBERDROLA GREEN HYDROGEN

Implementation and operation of a medium-scale photovoltaic (PV) plant (nominal capacity 100 MWp) including a battery storage system (storage capacity 20 MWh, power 5 MW), directly connected to a large-scale electrolyser (20 MW) for hydrogen production, using partially the renewable (PV) energy capacity (35 MW). The hydrogen will be supplied to the fertiliser industry, situated nearby the PV plant, replacing hydrogen from natural gas. The project is located in Spain, Ciudad real (Castilla-La Mancha, convergence region).

The operation aims at financing a green hydrogen plant for industrial use in the Spanish province of Ciudad real (Castilla-La Mancha, convergence region). The plant consists of a 100MW PV site and storage capacity of 20 MWh) as well as a large-scale electrolyser (20 MW) and a dedicated transmission line. The "green hydrogen" will be used to nurture a fertiliser plant.

The project entails the development and implementation of a large scale hydrogen generation plant (20 MW) based on electrolysis, fully powered by on-site renewable energy, via a dedicated transmission line to a 100 MW solar PV plant and the support of a 5 MW/20 MWh battery system.

The project will produce electricity from a low carbon source (solar PV) and displace fossil fuel-based hydrogen by "green" hydrogen, thus addressing the market failure of negative climate and environmental externalities, through the reduction of carbon emissions and air pollution. Furthermore, the project will make a contribution to the scale-up of the electrolyser's supply chain. It is also testing the use and benefits of energy storage via batteries.

The project supports the EU and national targets on renewable electricity and hydrogen generation, and thus 2030 decarbonisation and climate targets. The project also contributes to the goals of the EU Hydrogen Strategy (0.3% of capacity target for 2024), to the capacity target of the national Hydrogen Roadmap (by 0.5%) and to the sustainable development of an EU Less Developed region (also classified as EIB Priority Cohesion region). It is fully in line with the high priority areas of EIB's Energy Lending Policy. It contributes 100% to the EIB's Climate Action and Environmental Sustainability priorities.

The Bank's financial contribution is considered valuable to the client, as the EIB's offering is more favourable than market alternatives under various dimensions (e.g. longer tenor, availability and grace periods, convertible or revisable rates). EIB financing has also catalysed additional funding from the Spanish National Promotional Bank (ICO).

The project may include components that fall under Annex II of the EIA Directive (2011/92/EU), which requires the competent national authority to determine the need for an environmental impact assessment (EIA). The impacts that can be typically expected for some schemes relate to visual impact, impact on flying vertebrates, electromagnetic fields, noise nuisance, and disturbances during construction, as well as the possible impacts on protected fauna and flora (Habitats 92/43/EC and Birds 2009/147/EC). This operation is expected to contribute towards climate action objectives, and is aligned with EIB commitments as the EU Climate Bank.

The Promoter is a private entity. The contracts for the implementation of the project will be tendered in accordance with the relevant applicable national public procurement legislation in line with the EU Directives.