The case of green steel in Gijón highlights a broader issue in Spain’s renewable hydrogen initiatives: difficulties in reaching the estimated profitability figures threaten the viability of these strategic projects.

The country stood out at the latest summit as a leader in renewables and green hydrogen, solidifying its role in the energy transition. However, the event exposed deep geopolitical divisions and the lack of concrete measures to phase out fossil fuels.

The Galician Hydrogen Association (AGH2) faces challenges in permitting, financing, and regulations as it aims to promote hydrogen in industry, mobility, and domestic consumption, with the first implementations planned for 2025.

With a budget of 2 billion euros, the upcoming European Hydrogen Bank auction will be crucial for the development of the sector. Experts point out that competitive projects will depend on their maturity, ability to attract consumers, and adaptability to the strict conditions imposed.

Driven by the Spanish multinational Celsa and IREC, along with a dozen companies and technology centers, the project has explored the applications of SOEC technology for the sector. This electrolyzer operates at high temperatures, utilizing residual heat and excess steam generated in industrial facilities to produce renewable hydrogen.

The two companies have signed a collaboration agreement to promote carbon footprint reduction projects, focusing on the development of a logistics chain for the capture, transport, and storage of CO2.