Cepsa signs an agreement with Grupo Ibereólica Renovables to reinforce renewable energy supply for green hydrogen projects

Thursday, June 1, 2023

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Clean Energies

Energy Transition

Global

Cepsa and Grupo Ibereólica Renovables have signed an agreement that will enable Cepsa to support renewable electricity supply in the long term for its green hydrogen generation plants, located in the company's Energy Parks in Andalusia, as well as for its network of service stations. This renewable energy will come from a portfolio of up to 5 GW projects, mainly wind, which are being developed by Grupo Ibereólica Renovables and are at an advanced stage of planning.

The agreement reinforces the viability of Grupo Ibereólica Renovables' projects by considering the long-term sale of electricity from these projects, which are in development in the provinces of Burgos, Palencia, Valladolid, Zamora, Ávila, and Cáceres and are expected to be ready in 2026. Specifically, these 9 wind, 4 photovoltaic and 2 hybrid projects would generate an annual energy equivalent to the consumption of more than 4 million homes and would prevent the emission of 5.5 million tons of CO₂ per year.

The significant importance of wind energy in Grupo Ibereólica Renovables' portfolio optimizes the access to renewable energy for Cepsa's green hydrogen projects, as the wind production curve is complemented by the solar farms developed by Cepsa. The company now has 17 photovoltaic projects under development in Castilla-La Mancha, Andalusia, Extremadura, and the Community of Madrid, with a capacity of 2.1 GW, of which 1.1 GW is already connected to the grid and has an environmental impact statement (EIS) and prior administrative authorization.

Carlos Barrasa, Director of Commercial & Clean Energies at Cepsa, said: "Through this partnership with Grupo Ibereólica Renovables, one of the main players in the renewable energy sector in Spain, we strengthen long-term access to sustainable energies at a stable and competitive price, to promote the development of our green hydrogen and biofuel projects, and as a complement to our renewable energy projects."

Gregorio Álvarez, president and founder of Grupo Ibereólica Renovables, highlighted: "Our Group's partnership with one of the main players in the energy sector, Cepsa, is a fundamental tool to develop our portfolio of renewable generation projects in Spain in the medium and long term, and reinforces our resolute commitment to decarbonizing the energy mix as a means of promoting a more sustainable world."

With these projects, Cepsa seeks to sustainably cover the energy consumption of its industrial centers, especially to produce green hydrogen and supply the ultra-fast recharging points it is installing in its network of service stations for electric vehicles. Through its Positive Motion strategy the company aims to lead sustainable mobility and green hydrogen and biofuels production in Spain and Portugal by 2030.

With this partnership, Grupo Ibereólica Renovables seeks to consolidate its platform of renewable generation projects in Spain, strengthening its position as one of the main leaders in the renewable energy sector.