Repsol has taken a minority stake in Stargate Hydrogen, a European innovator in next-generation alkaline electrolysers, in a move that underlines Spain’s ambition to become a continental leader in green hydrogen.
The alliance will see the two companies collaborate on research, development and deployment, with Repsol expected to integrate Stargate’s technology into its flagship Spanish hydrogen projects.
Strategic Locations: Tarragona, Cartagena and the Basque Country
Repsol is advancing three large-scale hydrogen hubs, each situated at industrial complexes with immediate demand for green hydrogen.
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Tarragona (Catalonia):
The T-HYNET project will install a 150 MW alkaline electrolyser at Repsol’s petrochemical complex, producing 2.7 tonnes of hydrogen per hour. The scheme forms part of both the Hydrogen Valley of Catalonia and the Ebro Hydrogen Corridor.
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Cartagena (Murcia):
The CHYNE project, backed by €155 million in Spain’s Recovery, Transformation and Resilience Plan (PRTR), will deliver a 100 MW electrolyser producing 14,500 tonnes per year of green hydrogen for refinery use.
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Bilbao (Basque Country):
At Petronor, a subsidiary of Repsol, a 2.5 MW electrolyser has already entered operation, with a 100 MW expansion planned as part of the Basque Hydrogen Corridor.
These hubs are strategically positioned on Spain’s planned Hydrogen Backbone, a 2,600 km pipeline network, and linked to the H₂Med corridor, which will connect the Iberian Peninsula with France and ultimately northern Europe.
Economics: Driving Down the Cost of Green Hydrogen
Green hydrogen remains costlier than its fossil-based alternative. In northwest Europe, current renewable hydrogen prices hover around €7–8 per kilogram, compared with under €3 for grey hydrogen. Electricity costs account for up to 60% of the total, making Spain’s abundant solar and wind resources a natural advantage.
Electrolyser costs are another key factor. Conventional alkaline systems currently require capital expenditure of around €1,850–2,150 per kilowatt. Stargate claims its ceramic catalyst technology and redesigned stack architecture can lower both capital costs and operating expenses, improving efficiency and extending system lifetimes. For Repsol, validating this technology at scale could mean achieving production costs closer to the €3–5/kg range under favourable power purchase agreements.
Public funding mechanisms are helping to bridge the gap. Spain has already awarded nearly €800 million to green hydrogen projects, while European instruments such as the European Hydrogen Bank offer price support contracts of up to €4.5/kg.
Alignment with Spain’s National Hydrogen Strategy
Spain’s updated National Energy and Climate Plan (PNIEC) raises the 2030 target for electrolysis capacity to 12 GW, reflecting the country’s intent to secure a leadership role in Europe’s hydrogen economy. Alongside domestic decarbonisation, Spain is positioning itself as an exporter, leveraging both its renewable resource base and its geographic advantage as a gateway to European markets.
Repsol’s projects in Tarragona, Cartagena and Bilbao are precisely the kind of anchor investments Spain’s policymakers have sought large-scale plants co-located with refineries and chemical complexes, integrated into regional hydrogen valleys, and aligned with the emerging cross-border hydrogen infrastructure.
Outlook: A Test Case for Scaling Green Hydrogen
The Repsol–Stargate alliance has the potential to accelerate Spain’s progress by marrying industrial demand with innovative electrolyser technology. The near-term focus will be on proving Stargate’s stacks in continuous refinery service, where reliability and cost efficiency are paramount.
If successful, the partnership could help drive down the delivered cost of hydrogen, strengthen Spain’s competitiveness in green fuels, and support the country’s bid to become Europe’s hydrogen hub.
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