Decarbonisation Technology - November 2023 Issue

Andalusian Green Hydrogen Valley In December 2022, Cepsa announced its commitment to develop a 2GW electrolysis project in the Andalusian Green Hydrogen Valley, with two clusters in the highly industrialised areas of southern Spain: Huelva and Algeciras (see Figure 1 ). This situation will allow the development of a knowledge axis around renewable hydrogen, which will benefit from economies of scale through the construction of high-capacity renewable hydrogen electrolysers and the development of an integrated value chain, culminating in supply to various industries (fertilisers and others) and other economic sectors such as transport (maritime, aviation, and road transport). • Huelva’s Onuba Project seeks to decarbonise the facilities within the La Rábida Energy Park together with neighbouring industries, starting with the installation of 400 MW of electrolyser capacity (with a plan to increase up to 1GW as alliances with new partners are materialised). As well as decarbonising our operations by reducing our Scope 1 and 2 GHG emissions, we are reducing Scope 3 emissions for our clients via the decarbonisation of transport fuels and fertilisers. The project has already resulted in a collaboration between Cepsa and important partners such as Enagás Renovable, Alter Enersun, and Fertiberia. Together with Fertiberia, a leader in the development of sustainable and high-added solutions for agriculture, green ammonia will be produced from the implementation of renewable hydrogen by electrolysis. The Onuba Project will also meet other emerging demands, including: • Decarbonisation of our Energy Park and new internal projects, including a new hydrogenated vegetable oil (HVO) plant, to be developed together with Bio-Oils (an Apical company) for the production of decarbonised diesel-like fuels. • Road passenger transport through an agreement with Damas, a national road transport company, to promote sustainable mobility using renewable hydrogen as a fuel. The agreement aspires to contribute to the necessary technological development to promote the introduction of renewable

Figure 1 Andalusian Green Hydrogen Valley

Alternative Fuel Infrastructures (AFIR) Regulations, and an improved ETS (Emission Trading System). At the national level, the percentages and minimums required in the regulation are mandatory, so EU Member States must implement the regulations within the established timelines. Cepsa is an integrated energy company active in all phases of the oil and energy value chain, with a worldwide presence. It is the second largest consumer of hydrogen in Spain due to its internal demand in the refinery and chemicals activities. It is located in the Energy Parks (EP) of La Rábida (Huelva) and San Roque (Algeciras), where the main objective is to produce fuel for all transportation sectors. In addition, the company has extensive experience in projects and the operation of small- and medium-scale hydrogen technologies in safe industrial environments and the development of sustainable fuels: • Cepsa has been producing biofuels in its refineries for more than 10 years and is carrying out pioneering studies worldwide to convert waste and used oils into renewable fuels. • Cepsa is now using the experience gained in the production of biofuels to take the first steps towards the implementation of the Andalusian Green Hydrogen Valley in an environment with a high potential for the consumption of renewable hydrogen. Spain is well-placed to be a leader in the production of renewable hydrogen, as it is blessed with abundant solar and wind energy. Cepsa’s two Energy Parks are in southern Spain, where truly competitive renewable energy prices can be achieved.