Iberdrola

Solution Statement

In its commitment to lead the energy transition, Iberdrola is spearheading the development of green hydrogen to meet the electrification a decarbonization needs of sectors such as industry and heavy transport.

The group is thus placing itself at the forefront of this new technological challenge which involves the production and supply of green hydrogen from clean energy sources, using 100% renewable energy for the electrolysis process.

Iberdrola develops the hydrogen value chain by increasing renewable energy for industrial use, supporting the creation of new electrolyzer manufacturers and industrial alliances with leading companies, such as Fertiberia for the production of green ammonia in Puertollano I, operational in 2021. This Project consists of the on-site production of green hydrogen using a 20 MW electrolyzer.

In the mobility sector, Iberdrola is developing the TMB project, for the supply of green hydrogen to the urban bus fleet in Barcelona. Hydrogen production will be carried out on-site using a 5.5 MW electrolyzer and supplied by refuelling station. 

Challenge Statement

The green hydrogen projects developed by Iberdrola collaborate with the energy transition and compliance with the Hydrogen Roadmap defined by the Government of Spain, which includes national objectives such as the development of 4 GW of green hydrogen through electrolysis by 2030, and to reach climate neutrality and zero emissions by 2050.

Another target to be achieved in 2030 is to reach a competitive price between green and grey hydrogen. Grey hydrogen price is currently close to 1-2 €/kg whereas green hydrogen price is close to 4-8 €/kg. To achieve it, the cost of renewable energy and the electrolyzers capex must decrease, and the load factor of electrolyzers must be increased.

Iberdrola has signed up to the coalition Green Hydrogen Catapult-convened with the support of the High Level Climate Champions and hosted by RMI- with a view to drive down the cost of hydrogen. The coalition aims to bring down the cost of hydrogen to $2/kg by 2026, approximately half its current price. The partner companies aim to do this with 25GW of green hydrogen production by 2026, approximately 50 times more than is currently produced.

Energy Compact Description and Indicators

In the Iberdrola’s Wholesale and Retail Business in Spain, an alliance has been created with Fertiberia to develop the green hydrogen plants for industrial use in Spain (Puertollano and Palos de la Frontera). Actual goal for Hydrogen production includes the installation of 800 MW green hydrogen by 2027 with the production of 40,000 tons of green hydrogen per year and a CO2 reduction around 390,000 tons/year. This green hydrogen production facility means that more than 1,300 MW of new PV facilities will be installed up to year 2027.Interim target is achieving 20 MW in 2022. Translating this operational figures into H2 tons, ~40,000 tons H2 will be produced in 2027 and 1,000 tons H2 in 2022.

The capital cost of the hydrogen generation plant and Fuel Cell system is very high making P2P & energy storage solution unviable.  For the overall system to become viable, ramping up of manufacturing capability and setting up of manufacturing facilities in India needs to be incentivized. The overall round-trip efficiency also needs to be improved by way of technical improvements to reduce the requirement of renewable power