Cepsa and the Port of Rotterdam have forged a new partnership to develop a green hydrogen corridor.
1. Cepsa and Port of Rotterdam
Spanish oil and gas company Cepsa and the Port of Rotterdam are joining forces to create a new green hydrogen corridor, the first to connect the north and south of Europe. The corridor, expected to be operational by 2027, will connect two of Europe’s main ports, Rotterdam and Algeciras, in a bid to accelerate the decarbonization of heavy industry and maritime transport while supporting Europe’s energy independence.
The cooperation is part of Rotterdam’s ambition to supply Northwest Europe with 4.6 million tonnes of green hydrogen by 2030 and for Cepsa to positioning itself as a key player in green hydrogen production in Europe and the leader in Spain and Portugal.
The opportunity to build the first green hydrogen corridor in Algeciras, the leading energy port in Spain, demonstrates the unique role that Spain, and in particular Andalusia, will play in the energy transition in Europe.
Maarten Wetselaar, Cepsa’s CEO
2. Infrastructure development
With the Dutch government’s support and as part of Rotterdam’s Energy Transition plans, the Port Authority and many private companies are developing the necessary infrastructure and facilities for the import of green hydrogen. The joint venture is also planning its distribution into Northwest Europe connecting large industrial centers in the Netherlands, Belgium and Germany via hydrogen pipelines.
“Northwest Europe uses far more energy than it can produce in a sustainable way. 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 Mton of hydrogen will flow through the port, of which only 2 Mton will be produced locally,” said Allard Castelein, Port of Rotterdam’s CEO.
3. Ammonia and methanol
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 the Port of Rotterdam. The Dutch city hosts 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.
Spain is ideally placed to become a world leader in the production and export of green hydrogen, given its strategic location, abundant generation of renewable energies, and its robust energy infrastructures and key ports, such as Algeciras and Huelva.
Maarten Wetselaar, Cepsa’s CEO
4. Portfolio of renewable energy
Under its Positive Motion strategy, Cepsa aspires 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 will develop a portfolio of 7 GW of renewable, wind and solar projects together with other renewable energy producers in Andalusia to promote the integration of these new plants into the electricity system.
Wetselaar said the agreement is an example of the important collaborations necessary to deliver the energy transition in Europe and to ensure secure and independent energy supply. “Cepsa will continue to explore further partnerships in which we can accelerate Positive Motion and the roll out of green hydrogen and biofuels across the continent,” added Wetselaar.
