The Compostilla Green – H2 and eSAF Plant, promoted by RIC Energy in Cubillos del Sil (Castile and León), was selected by Spain’s Institute for Energy Diversification and Saving (IDAE) as one of the beneficiaries of the aid program for renewable hydrogen valleys, financed by NextGenerationEU funds.

The proposed aid amounts to €81.4 million, based on a subsidizable cost exceeding €632 million.

While the plant will install a total electrolysis capacity of 250 MW, IDAE considers 220 MW as eligible, since this reflects the average expected operation over the plant’s lifetime, as confirmed in an interview with Strategic Energy Europe by Pablo García-Salmones, Director of Hydrogen and Derivatives at RIC Energy.

Construction is scheduled to begin in early 2027, within the 36-month window following the final resolution, with commissioning expected by 2029.

From mining legacy to a hydrogen hub

The plant’s location in a Just Transition zone has played a decisive role. “It’s a depressed area, formerly a mining region, with a thermal power plant currently being dismantled. This project is intended to reindustrialize that space,” García-Salmones states.

Within this framework, Compostilla Green will create 2,000 jobs during construction and another 240 permanent positions for operation and maintenance.

The executive adds that RIC Energy’s involvement will be limited once the plant becomes operational, as it will be managed by “large companies, typically from the oil sector, with experience in this type of infrastructure.”

Renewable energy supply model

The energy model is based on supply from the grid, covered by power purchase agreements (PPAs) signed with solar and wind facilities owned by RIC Energy, to ensure the use of renewable electricity for as many hours as possible.

“We decided to move forward without dedicated renewable generation because it’s very difficult to develop new capacity in this area, especially wind power,” García-Salmones explains.

In parallel, the company is collaborating with regional authorities to assess the feasibility of installing 100 MW of solar for self-consumption, without grid injection. However, this option faces significant environmental restrictions.

“There have been some problems with local wildlife. It’s very difficult,” he acknowledges.

eSAF: A market with mandatory demand

A key feature of Compostilla Green is its focus on producing eSAF (sustainable aviation fuel)—a clean alternative now backed by regulation.

Since 2023, European regulations have mandated the use of SAF in aviation, ensuring strong and sustained demand.

“The SAF segment has demand. It’s regulated. There’s an obligation to consume this type of fuel,” the executive highlights, while noting that other hydrogen applications still lack such regulatory incentives.

The project has pre-contractual purchase agreements covering more than 60% of expected output, a prerequisite for admission to the IDAE program.

Funding to unlock implementation

The allocation of over €81 million in public funds is a key enabler for advancing the project, which until now had been financed with internal resources.

“We’re looking for partners, but this support allows us to move forward. Without it, it would have been very difficult to take the plunge with a project of this magnitude,” García-Salmones says.

The funds will primarily support the engineering and construction of the electrolysis facility, the infrastructure for green hydrogen production, and its conversion to eSAF.

Technical and strategic recognition

The project received a score of 76.27 out of 100 in IDAE’s evaluation. RIC Energy’s technical background, with prior experience in hydrogen project design and modeling across different regions of Spain, even at smaller scale, enabled the company to achieve 3.7 out of 5 points under the technical expertise criteria.

Meanwhile, the economic and social impact was rated at 3.5 points, considering the number of jobs created, the location in a priority Just Transition zone, and its contribution to regional development.

The initiative also aligns with EU objectives on circularity, industrial resilience, and proximity between hydrogen production and final consumption points.