Spanish utility Iberdrola has slashed its target for annual green hydrogen production by 2030 from 350,000 tonnes to 120,000 tonnes, citing delays to government funding that it has been promised over the past year.

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“The only target that we are diminishing is hydrogen,” the company’s CFO José Sainz Armada said during a capital markets day presentation in London.

“Not because we don't want to do hydrogen, we would love to do more projects, but we are still waiting for the funds to come through for the projects that we have presented,” he added.

“We have developed a wide portfolio of projects to supply hydrogen as long as the price guarantees the profitability,” said the company’s CEO Armando Martinez, noting that further government incentives would likely be needed in order to proceed with these investments.

The Spanish firm has two green hydrogen projects in operation — the 2,200 tonnes a year Puertollano facility and the 275 tonnes a year Barcelona I plant — with a third, the 150 tonnes a year Benicarló project, under construction.

Similarly, government funds have been allocated to two projects in UK with combined 2,750 tonnes of annual production capacity, as well as EU backing for a third in Spain with 16,500 tonnes a year.

However, although Iberdrola’s 22,000 tonnes a year Palos project has been given the green light for state aid by the EU, it is still waiting on funds to be allocated by the Spanish government.

Meanwhile, the Spanish company is exploring further projects in Australia, the US, Spain, Portugal, and Brazil with more than 100,000 tonnes a year of combined capacity.

However, Iberdrola has not specified whether any regions in particular have seen projects lose momentum.

The firm joins fellow European energy company Engie in walking back on aggressive green hydrogen production targets, with the latter firm delaying its 4GW ambition by five years.