Spain faces criticism over its existing renewable energy capacity and potential overuse of green energy for hydrogen production, which could slow down the overall decarbonization movement.
Spain, rich in natural resources and having a competitive renewable energy potential, is poised to invest in electrification, green hydrogen, and biofuels to become a European leader in sustainability and a clean-energy hub.
The natural conditions in Spain give it uniquely high potential for wind and solar power generation capacity compared to the rest of Europe. This, paired with the country’s already robust manufacturing capabilities, supportive policy environment and “strong network of potential hydrogen off-takers” enable the nation to produce green hydrogen at a much cheaper cost than most of its neighbors and economic partners. Spain can produce green hydrogen at a levelized cost of €1.
. “Spain is in a unique, privileged position to become a kind of Saudi Arabia of green hydrogen,” said Carlos Barrasa, vice president for clean energies at local refiner Cepsa SA. that there simply isn’t enough existing renewable energy capacity to produce sufficient amounts of green hydrogen to make the replacement of natural gas and coal in petrochemicals, steel and agricultural product fabrication feasible.
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