Spain Launches Green Hydrogen Auction for 35-MW Project

• MIBGAS and DH2 Energy launch Iberia's first renewable hydrogen auction, paving the way for a sustainable future with innovative projects like the 35-MW Hysencia plant.

Iberian gas market operator MIBGAS Derivatives and green hydrogen developer DH2 Energy have launched the first renewable hydrogen auction in the Iberian market, centered around DH2's 35-MW Hysencia plant in Aragon. The Hysencia project combines 35 MW of electrolysis capacity, 49 MWp of photovoltaic power, and a 10-MW grid connection. It was one of the winners in the inaugural European Hydrogen Bank auction and is expected to begin construction in mid-2025, with operations slated for the first half of 2027.

The auction opens on November 15, allowing both domestic and international companies to bid for hydrogen across various supply volumes and contract durations. It consists of three phases: pre-qualification, qualification, and bidding, with selected companies finalizing agreements with DH2 Energy. MIBGAS officials emphasize the significance of the Hysencia project in establishing a renewable hydrogen market, which is seen as essential for decarbonizing hard-to-abate sectors. The EU plans to conduct its second renewable hydrogen auction in December.

What opportunities does the first Iberian renewable hydrogen auction present for companies?

The first Iberian renewable hydrogen auction presents several promising opportunities for companies looking to engage in the renewable energy sector. Here are some key points highlighting these opportunities:

• Market Entry for Domestic and International Firms: Companies, regardless of their origin, can enter the Iberian market, thus broadening their operational footprint and potential customer base.
• Diverse Contract Options: The auction allows for various supply volumes and contract durations, enabling businesses to tailor their hydrogen procurement to meet specific operational needs and market strategies.
• Partnership Opportunities: Companies can explore collaborations with DH2 Energy or other stakeholders involved in hydrogen production, enhancing their technological and market capabilities.
• Early Engagement in a Growing Sector: By participating in this auction, firms can position themselves as early adopters in the burgeoning renewable hydrogen market, which is expected to expand significantly as demand increases.
• Support for Decarbonization Goals: Engaging in renewable hydrogen projects supports corporate sustainability ambitions as companies can contribute to the decarbonization of hard-to-abate sectors, enhancing their corporate social responsibility (CSR) profile.
• Access to EU Funding and Support: As part of the broader European approach to developing hydrogen infrastructure, participating companies may have access to funding opportunities and incentives aimed at promoting green technologies.
• R&D Opportunities: Collaborations with academic institutions or research organizations on hydrogen technologies can be enhanced through active participation in this auction, leading to innovation and improvements in efficiency.
• Strengthening Energy Security: By investing in hydrogen production, companies can diversify their energy sources, thus enhancing their energy security amid fluctuating fossil fuel markets.
• Competitive Advantage: Early entrants may establish a competitive edge over less proactive companies by gaining experience in hydrogen production and a better understanding of market dynamics.
• Networking and Knowledge Sharing: The auction creates a platform for companies to network with other participants, sharing insights, challenges, and strategies that can foster collective growth and innovation within the sector.
• Regulatory and Policy Influence: Active participants may have the opportunity to influence local policies and regulations surrounding renewable hydrogen, helping shape a favorable business environment for future projects.
• Brand Differentiation: Firms that engage in hydrogen projects can differentiate themselves in the market, showcasing their commitment to sustainable practices and innovation, which can be a compelling selling point for customers and investors.

Each of these opportunities can play a crucial role in shaping the future of companies in the renewable hydrogen sector, aligning with global trends towards sustainability and energy transition.