With a capacity of 20MW, the green hydrogen project will utilise 100MW of photovoltaic energy in order to generate the clean energy carrier.

This could be vital for the growing European hydrogen community with industrial-scale hydrogen entering the market and providing a basis to decarbonise further sectors in the EU.

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In order to achieve this, EIB will provide €53m ($58m) in funding with ICO additionally providing a further €35m ($38m), both recognised as loans certified as green finance, in Puertollano, Castilla-La Mancha, Spain.

The green hydrogen from this project will be utilised domestically by the fertiliser industry replacing the current grey hydrogen currently in use.

Once operational, the 20MW green hydrogen plant will enable the creation of 1,000 tonnes of green hydrogen per year.

Ricardo Mourinho Félix, Vice-President of the European Investment Bank, said, “As the EU’s climate bank, the EIB continues to support the building of sustainable infrastructure in Europe to foster the transition to zero net emissions.

“At this time, especially given the high energy and gas prices in Europe, we at the EIB strongly believe that hydrogen has the potential to play an important role in boosting Europe’s energy supply security.”

José Carlos García de Quevedo, President of ICO, said, “Is part of the actions carried out by ICO in the deployment of its Sustainability Policy, promoting public-private partnership projects that generate positive impact from both a social and environmental point of view.

“The green hydrogen plant built in Puertollano undoubtedly meets these two objectives, as it will contribute to generating employment in the region and boosting the ecological transition, one of the strategic objectives of the Recovery, Transformation and Resilience Plan.”