Spanish energy giant Repsol has confirmed it will no longer proceed with its planned 130 MW green hydrogen project in Puertollano, Castilla-La Mancha, citing that the venture is “technically and economically unfeasible.”
The project, announced in 2021, was expected to become one of Europe’s largest green hydrogen facilities, expanding Repsol’s existing electrolyser capacity in Puertollano from 2.5MW to 132.5MW. The development aimed to supply green hydrogen to Repsol’s industrial operations and support decarbonisation targets across its refining and chemical businesses.
However, Repsol stated that “following extensive technical and economic feasibility assessments, the company has determined that current market conditions and technological limitations prevent the project from moving forward as planned.”
The decision comes amid wider challenges facing Europe’s green hydrogen sector, including volatile electrolyser costs, limited supply chain capacity, and the need for competitively priced renewable electricity. Industry analysts note that although Spain has one of Europe’s most ambitious hydrogen strategies, with over 11GW of projects announced, only a small fraction have reached final investment decision due to similar constraints.
Despite this setback, Repsol reiterated its commitment to renewable hydrogen production, highlighting its operational 2.5MW electrolyser in Puertollano – Spain’s first large-scale green hydrogen unit – and its ongoing projects in Cartagena and Petronor refineries.
The cancellation raises critical questions about the pace and scale of Europe’s hydrogen rollout to meet its REPowerEU and decarbonisation goals. Many developers argue that dedicated hydrogen subsidies, guaranteed offtake agreements, and lower renewable PPA prices are essential to ensure financial viability.
The post Repsol Cancels 130 MW Green Hydrogen Project in Puertollano, Citing Economic and Technical Challenges first appeared on Haush.