On Tuesday, Castleton Commodities International (CCI), the energy products and infrastructure investment firm based in Stamford, Connecticut, announced that it was supporting Europe’s first green hydrogen project to be co-located in a Combined Cycle Gas Turbine Power Plant (CCGT). . According to a company announcement, Castleton’s involvement in the development of the Amorebieta-Boroa CCGT site in Spain reflects CCI’s ambition to advance the energy transition and contribute to the decarbonization of the European economy.
CCI invests alongside White Summit Capital, a Madrid-based infrastructure investor specializing in energy transition; Bizkaia Energía, which directly owns CCGT Amorebieta-Boroa and is itself majority owned by CCI, Nortegas, the second largest gas distributor in Spain (in which White Summit is a majority investor), and SENER, a Spanish group of leading engineering and technology.
The project consists of a 20 MW green hydrogen plant adjacent to CCGT Amorebieta-Boroa using part of the existing infrastructure of the conventional power plant and the gas distribution network. The plant is expected to produce 1,500 tonnes of green hydrogen per year from 100% renewable sources, which will offset the emission of more than 12,000 tonnes of CO2 into the atmosphere, the equivalent of removing more than 2 500 cars on the road each year.
Part of the green hydrogen generated will be used by the plant and will be used to directly reduce its CO2 emissions. In addition, the hydrogen will be injected into the Nortegas gas distribution network and mixed with natural gas, thereby decarbonizing part of the current gas system. The project also includes the installation of a hydrogen refueling station to meet the fuel needs of local public-private fleets of hydrogen-powered vehicles.
The project is the first of its kind to be co-located alongside a host CCGT and, according to CCI’s announcement, will contribute to the process of decarbonization of the energy and transport sectors in Spain. The site will be commercially operational by 2022.
CCI currently owns and operates more than 2,000 MW of power generation in Europe and, if successful, this project technology could be deployed on a large scale to all of its power generation facilities in Europe.
“Together with our partners, CCI seeks to accelerate the energy transition initiative in Europe by investing in key technologies such as hydrogen to supply energy,” said Arie Pilo, co-head of core investments at CCI. “We are delighted to be working on these projects which simultaneously reduce emissions, promote grid stability and solve important issues arising from the rapid acceleration of the deployment of renewable energy resources. Specifically, in the port of Rotterdam in the Netherlands, where CCI has two CCGTs, we will seek to collaborate with our local partners to continue to support the network and explore innovative ways to address the challenges of intermittency in the context decarbonization.
Mainly in Spain
Spain has become a site of considerable interest for the development of green hydrogen in recent months. In November, Nel Hydrogen Electrolyzer, a division of Norwegian hydrogen producer Nel ASA signed a Memorandum of Understanding (MoU) with Spanish utility giant Iberdrola to develop a 200 MW green hydrogen production plant in Spain. by 2023 and jointly develop a full green hydrogen. technological value chain in Spain.
“We are honored that Iberdrola wants to work more closely with us on electrolyser projects at scale of 100 MW and beyond. Just as Iberdrola in the past has successfully contributed to developments in the wind industry, they are now doing the same in the field of hydrogen, ”Nel CEO Jon André Løkke said during the official announcement of the memorandum of understanding in November.
Also in November, Iberdrola announced plans with global fertilizer maker Fertiberia to develop an 800 MW green hydrogen project for green ammonia production. Shortly thereafter, Nel and Iberdrola announced that Nel would be the preferred partner for the delivery of a 20 MW PEM electrolyser installation to Puertollano, Spain.
“This initiative will accelerate the production of green hydrogen in Spain and create a new industry, the manufacture of electrolyser systems, with high growth potential. We continue to make progress in our ambitious plan to place Spain and Europe at the global forefront of this technology by reducing energy dependence and consumption of fossil fuels while stimulating the economic and social revitalization of the country ” , said Iberdrola Chairman and CEO Ignacio Galán at the time.
Over the summer, the European Union – as part of a broad program to achieve net zero carbon emissions by 2050 – announced an ambitious green hydrogen strategy targeting 6 GW of fuel capacity. electrolysers installed by 2024, 40 GW installed within EU borders by 2030, and an additional 40 GW in neighboring countries with export capacity to the EU.