Iberdrola will construct the largest green hydrogen plant for industrial use in Europe

Iberdrola has launched what will be the largest plant producing green hydrogen for industrial use in Europe. The Puertollano (Ciudad Real) plant will consist of a 100 MW photovoltaic solar plant, a lithium-ion battery system with a storage capacity of 20 MWh and one of the largest electrolytic hydrogen production systems in the world (20 MW). All from 100 % renewable sources.

Puertollano (Ciudad Real)

Total installed capacity
100 solar MW + 20 electrolysis MW + 20 MWh storage

Jobs created
700 jobs

150 million euros

Commissioning date

Puertollano Green Hydrogen Plant

With an investment of 150 million euros, the initiative will create up to 700 jobs and prevent emissions of 39,000 tCO2/year. The green hydrogen produced there will be used Fertiberia's local ammonia plant.

This is already one of the most efficient plants in the European Union with a production capacity of more than 200,000 t/year. Fertiberia will update and modify the plant to be able to use the green hydrogen produced to manufacture green fertilisers. Thanks to this technology, it will be able to reduce natural gas requirements at the plant by over 10 % and will be the first European company in the sector to develop expertise in large-scale green ammonia generation.

Puertollano Green Hydrogen Plant.#RRSSPuertollano Green Hydrogen Plant.

Green Hydrogen plant
for industrial use

The new plant, which will become operational in 2021, will be developed in the municipality of Puertollano, a prime location with an important industrial hub. It is also the location of the National Hydrogen Centre, which has advised on the project since its inception. In addition, the project will help advance the technological maturity of green hydrogen and make it a solution for efficient decarbonisation in the medium term.

Iberdrola has selected the European company Nel Hydrogen Electrolyser — a division of Nel ASA — as its preferred supplier for the construction of the hydrogen production system by electrolysis, which will be based on its Proton PEM® solution.


The solar plant (100 MW) has already obtained a positive Environmental Impact Statement (EIS) and will have several innovations:

  • The installation will have bifacial panels, never used before in company projects, which enable greater production since they have two light-sensitive surfaces and provide a longer useful life.
  • The plant has been designed with cluster inverters or string inverters, which improve the yield and allow better use of the surface area.
  • The project will have a storage system, which will facilitate plant management. The battery system (with 5 MW of power) will have a storage capacity of 20 MWh.


The alliance between Iberdrola and Fertiberia aims to place Spain at the forefront of green hydrogen in Europe and make it a technological benchmark in the production and use of this resource, especially in the field of electrolysis. To this end, both companies have launched a comprehensive project that includes the development of 800 MW of green hydrogen with an investment of 1.8 billion euros until 2027.

The innovation initiative, which will start with the commissioning of the Puertollano complex, could be completed with a plan to multiply the capacity of this first plant by 40 with the development of three other projects between 2023 and 2027, which would be carried out at the Fertiberia plant in this municipality of Ciudad Real and at the Palos de la Frontera plant in Huelva.

The plan would achieve 800 MW of electrolysis, equivalent to 20 % of the national target of 4 GW installed by 2030, and would ensure that around 25 % of the hydrogen currently consumed in Spain would not generate CO2 emissions. The annual production of hydrogen, which is used as a raw material in the refining, chemical and fertiliser industries, is 0.5 Mt H2/year and this generates emissions of 5 Mt CO2/year. Worldwide this figure grows to 830 Mt of CO2/year (more than 2 % of global emissions).

In addition, the initiative would contribute to the development of the entire value chain, creating almost 4,000 skilled jobs (2,000 of them already in 2023) through 500 local suppliers.

The project, which is the result of private and public collaboration, is created with the same ambition that the government has shown in its Green Hydrogen Roadmap and would require support from the European Recovery Fund for the implementation of the last three stages. The European Union has launched a strategy to boost green hydrogen: it aims to have 40 GW of green hydrogen electrolysers in just 10 years.


Iberdrola, together with six leading global industrial companies, has announced the creation of a global alliance to speed up the scale and production of green hydrogen 50-fold over the next six years to boost the transformation of the world's most carbon-intensive industries, including power generation, chemicals, steel manufacturing and heavy transport.

The new initiative, Green Hydrogen Catapult, is made up of leaders in the green hydrogen industry (ACWA Power, CWP Renewables, Envision, Iberdrola, Ørsted, Snam and Yara), which are working to deploy 25 GW of hydrogen production based on renewable energies by 2026 and to halve the current cost of green hydrogen to less than $2 per kilogramme.

Through this newly-created initiative, the founding partners will work together to speed up the technological transformation and make progress in component manufacturing and construction, market development and investment. Achieving the goals set for Catapult will entail an investment of approximately 11 billion dollars and will create more than 120,000 jobs, which will also boost the recovery from the COVID-19 catastrophe.

Green Hydrogen Catapult is a key part of the private sector climate action promoted by the United Nations' High Level Climate Champions, Nigel Topping and Gonzalo Muñoz, through the Race to Zero campaign.


Iberdrola has also entered into an agreement with Norwegian company Nel to develop electrolysers on a major scale and promote the value chain of this technology in Spain. Nel is world's leading electrolyser manufacturer and offers optimal solutions for producing, storing and distributing hydrogen from renewable energy.

Iberdrola has joined forces with Basque company Ingeteam to create Iberlyzer for this project, a company that will become Spain's first mass manufacturer of electrolysers. Iberlyzer will start operating in 2021 and will supply more than 200 MW of electrolysers in 2023. This output — which will account for more than 50 % of installed electrolyser capacity planned for Spain by that date — will be used in the second project to emerge from the alliance between Iberdrola and Fertiberia, which will produce green hydrogen for the plant in Palos de la Frontera.

The Iberlyzer industrial project will entail an investment of almost 100 million euros and will create jobs for 150 qualified workers.


Iberdrola will create a new business unit of green hydrogen with the aim of positioning the group as a world leader in this technology, taking leadership of the new technological challenge of producing and supplying hydrogen from clean energy sources. In order to do so, the company will use 100 % renewable electricity in the electrolysis process, thus responding to the electrification and decarbonization needs of sectors such as industry or heavy transport.

Furthermore, it has joined the Choose Renewable Hydrogen, initiative, through which companies in the energy sector are urging the European Commission to take appropriate measures to make the most of the potential of green hydrogen.

And ScottishPower, Iberdrola`s subsidiary in the UK, has also launched a new commercial division dedicated to supplying green hydrogen. Furthermore, it has joined Green Hydrogen for Scotland — a partnership of SP Renewables, BOC (a Linde company) and ITM Power bringing together industry-leading names in the renewables and clean fuel industries — to create new green hydrogen production facilities with clusters of refuelling stations across Scotland, supporting the country's efforts to achieve net zero by 2045.

It is estimated that decarbonising global hydrogen production through the use of 100 % renewable energy would also increase electricity demand by over 10 %.

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Iberdrola already operates 2,229 MW of renewable energy in Castilla-La Mancha which is mainly wind power and because of this the Castilla-La Mancha community has the second most "green" megawatts installed by the company. Beside these, it will develop three new photovoltaic projects more in the region with an installed capacity of 150 MW.