SIGNALS OF CHANGE: THE FUTURE OF GREEN HYDROGEN IN SPAIN

I think that Green Hydrogen will have an increase in 2024 because there are a lot of
signals of change, and if they continue to grow, we may be in front of a new source of
energy which will makes us less dependent on fossil fuels.

1. The first signal of change that I saw is investment from oil companies, the
Spanish government, and organizations:

- Puertollano green hydrogen plant. Iberdrola commissions the largest green

hydrogen plant for industrial use in Europe:

https://www.iberdrola.com/about-us/what-we-do/green-hydrogen/puertollano-
green-hydrogen-plant

The investment that Iberdrola will make is a total of 150 million euros.

- Cepsa. Andalusian Green Hydrogen Valley:

https://www.cepsa.com/en/businesses/commercial-clean-energies/green-

hydrogen/andalusian-valley

The investment that Cepsa will make is a total of 3 billion euros.

- Fusion Fuel to build green hydrogen project in Toledo.

https://www.investinspain.org/content/icex-invest/en/noticias-main/2023/fusion-

fuel.html

The investment that the Portuguese company will make in our country is a total

of 3.3 million euros.

2. The second signal of change that I saw is European leadership and a clear

objective from the Spanish Government to be world leaders in green hydrogen.

- Spain as world leader in green hydrogen. Iberdrola in their website says that

Spain has the opportunity to position itself as a technological benchmark in the

production and use of green hydrogen.

https://www.iberdrolaespana.com/about-us/business-lines/green-hydrogen
 If Spain wants to achieve this, they must meet a series of objectives that the

country must meet by 2030.

- Spain in the Pole Position for Green Hydrogen

https://agendapublica.elpais.com/noticia/18804/spain-pole-position-for-green-

hydrogen

The development of green hydrogen requires a public impetus that finally is now

beginning to materialize. Investors have confidence in Spain.

- Green Hydrogen: Why Spain is Leading in Europe

https://aimsinternational.com/en/2023/09/green-hydrogen-why-spain-is-leading-

in-europe/

It is important to say that Spain is the lucky possessor of the three critical

elements needed for Green Hydrogen: water, wind, and sunlight. In addition,

over the past two decades, Spain has also developed the specialized technology

necessary for this endeavor with a huge amount of investment from private

enterprises to public ones like the government itself, or even, the European

Union.

With all these signals of change, I personally think green hydrogen in Spain will

become more common in the future.

A scenario matrix for Spain's green hydrogen industry considers several

variables that may have an impact on how the industry develops.

Factors:

1. Regulation and policy

2. Renewable energy integration

3. Investment and funding

 4. International collaboration

Scenario matrix:

Possible scenarios:

- Scenario 1: Robust green hydrogen sector with strong policy support, high

renewable integration, significant investments, advanced technology,

international collaboration, and extensive infrastructure development. High

market demand drives growth, making Spain a global leader in green hydrogen.

- Scenario 2: Growing green hydrogen market with a mix of challenges and

opportunities. Moderate policy support and renewable integration, accompanied

by decent investments and infrastructure development. Market demand is

healthy, but uncertainties exist.

- Scenario 3: Limited market development with slow growth, hindered by weak

policy support, low renewable integration, and inadequate infrastructure.

Minimal international collaboration and limited market demand result in a

stagnant green hydrogen sector.

- Scenario 4: Decent market growth with moderate policy support and renewable

integration. Substantial investments support technological advancements,

leading to a competitive market. Infrastructure development is good, and market

demand is steady.

- Scenario 5: Gradual progress, hindered by intermittent renewable energy

challenges and regulatory uncertainties. Investments are moderate, and

infrastructure development faces some hurdles. Market demand is growing, but

not at an accelerated pace.

- Scenario 6: Slow growth, struggling with both regulatory uncertainties, and

intermittent renewable energy challenges. Limited investments and

infrastructure development contribute to a sluggish green hydrogen sector.

Market demand remains modest.

- Scenario 7: Limited market development with challenges due to low renewable

integration and weak policy support. Insufficient investments and inadequate

infrastructure hinder the growth of the green hydrogen sector. Market demand is

niche.

- Scenario 8: Slow growth with intermittent energy challenges, regulatory

uncertainties, and limited investments. Infrastructure development is

constrained, and market demand remains relatively low, mainly for specific

applications.

Each scenario reflects a combination of these elements, highlighting the complexity

of the green hydrogen landscape in Spain.