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Repsol freezes hydrogen plant investment

GO HYDROGEN

Repsol freezes hydrogen plant investment

Repsol has warned the lack of stability in Spain’s regulatory and fiscal framework may impact its future industrial projects in the country as it emerged it had frozen a hydrogen plant project in the Basque country.

Source: h2-view

After it posted net income of €2.785bn in the first nine months of the year,

The possible continuation of a tax on energy companies that had been designed to be temporal and extraordinary punishes the companies that, like Repsol, are investing in industrial assets, creating jobs and guaranteeing the country’s energy independence and instead favour importers that neither create jobs nor any relevant economic activity in Spain.

Repsol

The stakes are high for company and policymakers alike. Repsol’s investments through to September totalled €4.362bn (up 82%), mainly in Spain and the United States, and aligned with the aim to allocate 35% of total investments in the year to low-carbon projects.

Its organic spending is expected to reach approximately €5.2bn for the full year, so its facilities, five of which are located in Spain, can manufacture products with low, neutral and negative carbon footprints.

Between January and September Repsol contributed €10.890bn to the public coffers – and nearly 70% (€7.441bn) corresponded to Spain. Own taxes accrued amounted to €3.206bn and accounted for more than half of the company’s profits (52%).

In addition, the company contributed a corporate income tax rate of 37% during the period, claiming it paid the most taxes among Ibex 35 companies.

2023 is proving to be a year of profound transformation for Repsol, with steady progress in decarbonisation and the consolidation of our multi-energy profile.

Josu Jon Imaz, CEO, Repsol

The 100MW electrolyser that has been shelved was scheduled to be commissioned in the port of Bilbao, and raises broader questions about plans to build a Basque Hydrogen Corridor.

Repsol announced plans to deploy a network of renewable hydrogen supply points in the vicinity of its industrial centres, as well as in the main logistics corridors of the peninsula, where transport demand is significant enough to locate an electrolyser.

On the bright side, the company will shortly commission Spain’s first renewable fuels plant in Cartagena and the second, announced in July, will be built in Puertollano.

Production of renewable hydrogen began at the Petronor refinery (Vizcaya) in October. The electrolyser also supplies renewable hydrogen to the Abanto Zierbana Technology Park, where Petronor’s new offices are located, and helping power buses and heavy goods vehicles.

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