On a noteworthy day for the energy sector, Envision Group, a prominent player in renewable energy, announced a significant collaboration with the Spanish governmentThis partnership aims to establish a hydrogen equipment manufacturing plant in Spain, marking a strategic entry into the burgeoning green hydrogen marketNot only has Envision pledged to invest a staggering $1 billion into this venture, they also intend to create a zero-carbon hydrogen industrial park alongside local enterprises, ensuring a 100% green electricity supply for their hydrogen production.
This development is far from isolated; it highlights a growing trend among Chinese hydrogen companies exploring opportunities in SpainJust recently, on September 3, China Electrochemical Energy Corevealed plans to construct an electrolysis plant and green hydrogen project in the southern province of AndalusiaWith an estimated investment exceeding €2 billion euros, this facility is projected to achieve an annual production capacity of up to 5 gigawatts
Established in 2007 and headquartered in Beijing, China Electrochemical Energy specializes in water electrolysis for hydrogen production, refueling systems, and energy storage solutions.
The influx of Chinese firms into the Spanish hydrogen landscape underscores an increasingly competitive marketPrior to Envision and China Electrochemical Energy’s announcements, several key players, including LONGi Green Energy and Trina Solar, had already unveiled their green hydrogen projects in SpainThis surge in investment and collaboration is rooted in Spain's geographical advantages and its wealth of renewable resources, making it an attractive destination for energy enterprises seeking growth.
Geographically, Spain occupies a strategic position on the Iberian Peninsula, as it bridges Europe and AfricaThis unique location is surrounded by the Atlantic Ocean to the east and the Mediterranean Sea to the west, both of which offer abundant wind and solar energy potential
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Public records indicate that Spain stands as the second-largest solar thermal energy producer worldwide and the largest in EuropeIt is also the second-largest producer of photovoltaic energy globally and ranks high in wind energy production as wellOver 70% of its electrical energy is exported to neighboring nations, including France, Portugal, and Morocco.
In discussing the production of green hydrogen, Yu Feng, Senior Vice President of Envision Energy and head of the Hydrogen Product Line, emphasized the simplicity of the process, stating, “To produce green hydrogen, you only need water and electricitySpain has an excellent capacity for solar energyThrough solar power generation and energy storage, the supply of green electricity for the zero-carbon industrial park can be fully realized.” He elaborated on the need for energy storage solutions, noting that the fluctuations in photovoltaic and wind energy necessitate a reservoir-like storage system
Hydrogen storage tanks could serve as one such solution.
In recent years, Spain has ramped up its efforts to nurture the hydrogen sectorThe country has set ambitious targets in its climate strategy, aiming to create an electrolysis capacity of 11 gigawatts by 2030, positioning itself as a key supplier of green hydrogen in EuropeIn July of this year, Spain's government announced nearly €800 million in subsidies to support seven large-scale green hydrogen projects, boasting a combined installed capacity of 652 megawatts.
Yu Feng also pointed out the advantages of converting electricity into green hydrogen for storage and transportation“Solar and wind energy cannot be stored or transported in bulkBy transforming electricity into green hydrogen molecules, which can then be further converted into ammonia, methanol, and sustainable aviation fuel (SAF), we can enable storage and transportation options
This means we can utilize green ammonia as a medium to transfer green electricity globally,” he explained.
Another industry representative underscored Spain's logistical advantages, stating, “Spain ranks third in the EU for maritime freight volume, with the ports of Algeciras and Valencia among the top ten in the EU and the top fifty worldwide.” Moreover, Spain's status as part of the EU, coupled with the Spanish-speaking demographics in parts of South America, could facilitate easier market access for hydrogen and its derivatives, notably ammoniaThis strategy envisions hydrogen as a carrier for transporting wind and solar-generated electricity globally, eventually converting back into green hydrogen to serve decarbonization efforts across various sectors, including petrochemicals, steel, and transportation.
Beyond these industrial applications, ammonia's versatility extends to agriculture, chemicals, and shipping industries
It can even be blended with coal power for combustion in electricity generation or replace natural gas for turbine power generation.
Furthermore, Envision's collaboration will involve working with BASF, a German chemicals giant, to accelerate the conversion of green hydrogen and carbon dioxide into green methanolAdditionally, partnerships with global logistics companies like DHL Group will explore opportunities in sustainable aviation fuel.
As the competition in China's hydrogen energy market intensifies, the strategy of “going overseas” has emerged as a vital necessity for firms in the hydrogen industry to expand their market footprintBesides the companies already mentioned, over a dozen manufacturers, including Air Products, Guofeng Hydrogen, and Cockerill, are forging international collaborations, enabling the global integration of China’s hydrogen production chains and equipment.