Cummins plans to build one of the world’s largest electrolyser plants in Castilla-La Mancha, Spain, as part of a partnership with Iberdola, Kallanish reports.

The companies said on Monday the cooperation agreement will see Cummins build a “state-of-the-art” PEM (proton exchange membrane) electrolyser facility in Spain to house system assembly and testing for a production of 500 megawatts per year. This capacity is planned to increase to over 1 gigawatt/year.

The €50 million ($61.06m) project will be located at a site within the Guadalajara area and should be operational in 2023. The companies are yet to define the site location, but a selection search is ongoing.

Through the partnership agreement, the US-based company will be the official supplier of electrolysers to Iberdrola – a leading project developer and hydrogen supplier to final industrial customers. The Spanish utility has submitted 53 hydrogen-related projects to the Next Generation EU funding programme, which could unlock €2.5 billion in investments to reach 60,000 tonnes/year hydrogen production capacity.

This would account for 20% of the Spanish target of 4 GW capacity by 2030, while ensuring 25% of the country’s current hydrogen demand is emission-free.

As part of their collaboration, the 230 MW green hydrogen project in Palos de la Frontera, Spain, that Iberdrola is developing for Fertiberia will “become a benchmark for large electrolysis projects.” Cummins will supply the equipment to the project and the experience gained in the process will be used by the companies to jointly collaborate in the design of solutions for large electrolysis projects.

Their partnership also includes the construction of a hydrogen refuelling station in Barcelona, Spain, with opportunities for further partners and collaborations in the future.

Iberdrola’s ceo Ignacio Galán says the initiative “will accelerate the production of green hydrogen in Spain and will create a new industry: the manufacturing of electrolyser systems, with high growth potential.” He adds the company continues to progress its “ambitious plan to put Spain and Europe at the global forefront of this technology by reducing energy dependence and fossil fuel consumption.”

Cummins’ ceo Tom Linebarger notes that Spain offers a “strong and dynamical local environment for hydrogen production,” and the company’s European expansion. “We believe that this is just the start of our expansion into new markets, bringing new clean technology to customers, and supporting efforts to bring the European Union’s Green Deal to fruition,” he adds.  

The Spanish utility currently operates 2.37 GW of renewable power in Castilla-La Mancha, which is essential for the production of green hydrogen.