Shipping in the Gibraltar Strait. File Image / Pixabay.
A green hydrogen plant -- that would be Europe's biggest when built -- is slated for southern Spain.
Oil firm Cepsa, gas opeator Enagas and new energy concern Alter Enersun are to work on the project which will be based Huelva and Algeciras, according to Reuters.
The Huelva green hydrogen plant, with electrolysis capacity of 200 MW, will be connected to a solar power plant and located in an area Cepsa calls the southern Andalusian Green Hydrogen Valley.
The plant will be operational in 2026. Its production will supply Cepsa's own industrial consumption and will enable the manufacture of advanced biofuels, Cepsa stated according to the report.
Green hydrogen is developed from renewable sources and is seen as a low carbon alternative for heavy transport including shipping and airlines.
The fuel currently has a weaker standing in the marine space as shipping lacks the supply and delivery infrastructure to make the low-carbon and renewable fuel commericially viable.
However, analysts say that the alternative fuel should start to build a greater prescence in shipping after 2030.