Cepsa launches €1bn Spanish green ammonia plant, eyes exports to Port of Rotterdam this decade

The ammonia plant will be sited at the company’s San Roque energy park in Cadiz, Andalusia, which will also be the location of one of the company’s two planned 1GW electrolysers.

However, while Cepsa has previously announced it would spend €3bn on the Andalusian Green Hydrogen Valley, it is not clear if this new ammonia plant investment is included in that budget.

Cepsa has also signed a strategic partnership agreement with fertiliser giant Yara’s clean ammonia subsidiary to establish a north-south European clean hydrogen shipping corridor between the ports of Algeciras. southern Spain, and Rotterdam in the Netherlands.

These agreements build on previous memoranda of understanding signed with Rotterdam’s ACE Terminal and industrial services company Getec to export and distribute hydrogen and ammonia from the Andalusian Green Hydrogen Valley throughout central Europe.

However, while Yara has one of the largest ammonia and fertiliser plants in the Netherlands, it has not committed to direct hydrogen offtake from Cepsa. Rather, the company plans to leverage its distribution infrastructure to help the Spanish oil & gas firm market and deliver green ammonia to industrial and maritime customers in Rotterdam and central Europe more widely.

“Today’s agreements are a crucial step towards the long-term viability of the Andalusian Green Hydrogen Valley and the implementation of the first maritime corridor of sustainable fuels that will link the South with the North of Europe,” says Cepsa CEO Maarten Wetselaar.

“Green hydrogen and its derivatives are the fastest, most viable and competitive solution to accelerate the energy transition in heavy transport and ensure energy independence in Europe. The agreements announced today give our project crucial access to markets, customers and distribution infrastructure: three key elements to unlock the potential of our hydrogen valley.”