EDP, a leader in renewable energies through its subsidiary EDP Renewables, will develop up to 1GW in Campo de Gibraltar, Cádiz, as part of the Andalusian Green Hydrogen Valley, the largest green hydrogen project in Europe promoted by Cepsa.

Miguel Stilwell d’Andrade, CEO of EDP, said: “This agreement with Cepsa is an important step in EDP’s plans to convert its thermal power plant in Los Barrios and to propel industrial decarbonisation through the use of green hydrogen, and is another move to strengthen energy independence in Europe.”

Maarten Wetselaar, CEO of Cepsa, said to accelerate the energy transition, it is necessary to seek partners and synergies that enable us to move forward in this process in an agile and competitive way.

“It is with this ambition that we are signing this agreement with EDP, one of the leading global companies in renewable energy production, which will provide us with the electricity needed to produce green hydrogen competitively,” he said.

The partnership is part of both companies’ ambition to promote the decarbonisation of industry and heavy land, air, and maritime transport. In addition to the supply of renewable electricity, the agreement also includes the possibility of collaboration on the production of sustainable marine fuels.

Decarbonising the economy is a priority for both companies, which each have a significant presence in the Bay of Algeciras and a strong commitment to the local community.

The agreement allows the pair to maximise the complementary characteristics and synergies of their sector knowledge, technical capabilities, and proximity of their facilities.

This new partnership is part of Cepsa’s 2030 Positive Motion strategy, through which the company aims to lead sustainable mobility in Spain and Portugal, as well as the production of renewable hydrogen and advanced biofuels to help decarbonise not only its clients’ activity, but also its own.

EDP, in its mission to lead the energy transition, is looking to transform its thermal power plants into sites linked to renewable energies, green hydrogen, energy storage, and the flexibility of the electricity system. This agreement will facilitate the conversion of EDP’s thermal power plant in Los Barrios, Cádiz, into a green hydrogen plant.

This partnership contributes to several of the 2030 Agenda’s Sustainable Development Goals: SDG 7 (Affordable and clean energy), SDG 8 (Decent work and economic growth), SDG 12 (Responsible consumption and production), and SDG 13 (Climate action).