Decarbonisation Technology - November 2023 Issue

to develop a hydrogen import terminal in the Port of Rotterdam. The terminal will have the capacity to be used as a storage of ammonia to be finally used as fuel, feedstock for fertilisers, or hydrogen carrier for customers in central Europe. The terminal will also offer the conversion of the ammonia into hydrogen and facilitate the transshipment and onward transit. Another agreement has been signed with GETEC, which provides heating, cooling, and electrical services to industrial customers in various sectors (chemical, automotive, and food) in Germany, the Netherlands, Switzerland, and Italy. This alliance will enable the supply of green hydrogen and its derivatives, which GETEC will distribute to industrial customers in different European countries. Conversations are ongoing with other potential partners. H2 ring The main strength of both projects is the possibility of using different assets from different partners to take advantage of every single component within the ‘H2 ring’ (see Figure 2 ). Each site will produce and mix various types of hydrogen (electrolytic, biogenic, and catalytic). The industrial hubs will provide the flexibility to meet the demand for different products over time, considering external factors such as the availability of renewable energy and the growing demand for sustainable fuels. Given the uncertainty in the emerging demand for the different fuels, this will enable Cepsa to focus on the development of RFNBOs (hydrogen, ammonia, and methanol) with the flexibility to adapt to emerging demand. Potentially, this flexibility will also allow the provision of ancillary services to the power sector. Innovation and knowledge sharing Cepsa brings its experience in managing different technological, finance, and environmental aspects to support an innovative and clear energy transition commitment while searching for new solutions that work efficiently across different sectors and with people from the society to meet these challenges. As an example, Cepsa will promote the circular economy by using residual water from public

pretreatment plants in its processes, thus encouraging the development of public/private collaboration. In addition, it is important for all society to embrace this new paradigm. One way Cepsa is doing this is through training courses organised together with the International University of Andalusia (UNIA) to share experiences with professionals from the different sectors based on the development of Cepsa’s strategy and the risks associated with them. Challenges Several challenges are hindering the growth of this new market. Despite all the efforts made so far, regulatory uncertainty remains, particularly with regards to meeting the requirements for RFNBO production and reducing energy supply costs, certification of the final product, and permitting. A supportive regulatory environment is key to the expansion of this market. Considering the current gap between the cost of grey and green products, appropriate subsidies are essential. Formulas combining Capex and Opex support should be investigated. Lastly, it is also crucial to establish a robust power distribution network to meet the new demand resulting from the electrification of the economy. Final remarks/commitment Cepsa is committed to taking the necessary actions to accelerate the energy transition and the move towards a low-carbon economy, constantly seeking new energy solutions and more efficient technologies that allow us to reduce our emissions. We strive to minimise the impact of our activities and give the highest priority to protecting the environment. We work for the coexistence of industry and the environment in a sustainable manner through actions to conserve biodiversity, protect the marine environment, and manage water responsibly.

H 2 Business Unit, Cepsa olivia.infantes@cepsa.com