Spanish energy company Iberdrola is teaming up with power technology company Cummings to develop large-scale green hydrogen plants in Spain and Portugal.

The duo have signed an agreement to accelerate the growth of business opportunities in the electrolyser market of Iberia, promoting the green hydrogen value chain.

A site selection search within the Guadalajara area of Castilla-La Mancha is currently underway for Cummins’ new €50m PEM electrolyser (pictured) plant that will house system assembly and testing for approximately 500MW a year.

The plant will be scalable to more than 1GW/year, the partners said.

The facility, which will initially be 22,000 square metres, is anticipated to open in 2023, creating 350 new jobs as production ramps up.

Cummins has deployed more than 600 electrolysers in 100 countries globally.

As part of the alliance, a 230MW green hydrogen project in Palos de la Frontera that Iberdrola has planned for the fertilizer producer Fertiberia will become a benchmark for large electrolysis projects.

Cummins will be the electrolyzer supplier for the Palos project and through the experience acquired in the project, Iberdrola and Cummins will jointly collaborate in the design of solutions for large electrolysis projects.

Cummins and Iberdrola are also collaborating on a hydrogen refueling station in Barcelona, Spain, with additional partnership and broader collaboration opportunities anticipated in the future.

Iberdrola chairman and chief executive Ignacio Galan said: “This 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.

“We continue to make progress in our ambitious plan to put Spain and Europe at the global forefront of this technology by reducing energy dependence and fossil fuel consumption while driving the country's economic and social revitalization.

“We congratulate ourselves on the choice to locate the project in a region that we value and in which we maintain a historic presence and commitment.

“This joint initiative will contribute to the economic, industrial and quality employment development in the region and will reinforce its great innovative commitment to a decisive technology for the decarbonisation of the industry.”

Cummins chairman and chief executive Tom Linebarger said: “Spain offers a strong and dynamic local environment for hydrogen production, and we are excited to invest here and significantly increase our manufacturing capacity in Europe.

“Our partnership with Iberdrola will connect us with a major clean energy company and strategically positions us to be a European leader in green hydrogen production.

“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.

“As communities move toward zero emissions, this is the latest example of Cummins’ global effort to achieve carbon neutrality and accelerate the hydrogen economy.”