Under a signed Memorandum of Understanding (MoU), Cepsa plans to export its hydrogen produced near the Bay of Algecircas through hydrogen carriers such as ammonia and methanol to the Port of Rotterdam.

Expected to be operational by 2027, the trade lane is hoped to aid the decarbonisation industry and maritime transport in Rotterdam, and the Bay of Algecircas, which sits as an important trade route between Europe and Asia.

Additionally, the partners believe the corridor could support Europe’s REPowerEU plan which has set the target of importing 10 million tonnes of hydrogen annually.

Read more: REPowerEU: €34-49bn needed for hydrogen infrastructure

The Port of Rotterdam in May (2022) revealed intentions to become a key import hub for Europe’s hydrogen targets, with the port Authority claiming it could supply the continent with 4.6 megatonnes of hydrogen per year by 2030.

Read more: Port of Rotterdam could be situated to provide 4.6 megatonnes of hydrogen annually by 2030

Maarten Wetselaar, CEO of Cepsa, said, “This agreement is an example of the important collaborations necessary to bring about the energy transition in Europe and to ensure secure and independent energy supply. Cepsa will continue to explore further partnerships in which we can accelerate Positive Motive and the roll out of green hydrogen and biofuels across the continent.”

Under its Positive Motive strategy, Cepsa plans to develop a portfolio of 7GW of renewable wind and solar projects to facilitate 2GW of green hydrogen production capacity in Spain and Portugal by 2030.

Allard Castelein, CEO of Port of Rotterdam Authority, commented, “Northwest Europe uses far more energy than it can produce in a sustainable way. We are therefore setting up multiple trade lanes for green hydrogen, together with exporting countries and private businesses all over the world.

“Southern Spain with its abundant space, sun, wind, and ports is a logical location to produce green hydrogen for both local use and export. Setting up this trade lane between Algecircas and Rotterdam is a substantial contribution to Europe’s ambition to reduce carbon dioxide emissions as well as increasing its energy independency and stimulate our economies.”