Highlights
- White Summit Capital, Castleton Commodities International (CCI), Nortegas, SENER and Bizkaia Energía will launch the first green hydrogen plant in Spain with a capacity of 20 MW, which will maximize the benefits of existing infrastructure in Amorebieta (Biscay), giving the project a superior speed and competitiveness.
- The goal is to generate 1,500 tons of green hydrogen per year from 100% renewable sources, avoiding the emission of more than 12,000 tons of CO2 into the atmosphere.
- A portion of the green hydrogen generated will be used in Bizkaia Energía's Gas-fired Combined Cycle Gas Turbine (CCGT) plant - next to which the new hydrogen project will be located - in order to reduce the CO2 emissions of the current conventional power generation technology.
- The project, which will commit an initial investment of 50 million, is expected to reach start of operations by the end of 2022 thanks to the use of existing infrastructure. The intention is to scale-up the project to 200MW by 2030 with a total investment of 300 million.
- The plant will also generate sustainable employment in the region by giving Boroa's current facilities a future beyond conventional power generation.
White Summit Capital, an infrastructure investor specialised in energy transition; CCI, a global energy commodities firm and the majority owner of Bizkaia Energía; Nortegas, the 2nd largest gas distribution company in Spain; Bizkaia Energía, direct owner of the Amorebieta-Boroa CCGT plant; and SENER, a leading Spanish engineering and technology group, will launch the first green hydrogen plant that benefits from the infrastructure of a conventional power generation plant and the national distribution gas network in Amorebieta (Biscay).
The project will develop a 20 MW green hydrogen plant on the existing gas and electricity infrastructure of the Amorebieta-Boroa CCGT plant. The objective is to generate 1,500 tons of green hydrogen per year from 100% renewable sources, through Certificates of Origin (CO) and green Power Purchase Agreements (PPA), which will avoid the emission of more than 12,000 tons of CO2 into the atmosphere.
A portion of the green hydrogen generated will be used in Bizkaia Energía's CCGT plant - next to which the new hydrogen project will be located - in order to reduce the CO2 emissions of the conventional power generation technology. In addition, the hydrogen will be injected into Nortegas' current distribution network, where it will be blended with natural gas, decarbonizing part of the current power consumption.
This hydrogen could also be used to some extent, to meet specific H2 supply needs of the local industry, and to store liquid H2 through chemical carriers.
Finally, a H2 refuelling station will be installed to fulfil the requirements of local public-private fleets of hydrogen-powered heavy vehicles.
Thanks to the strategic location of the plant, and to the competitive advantages provided by the project, part of the H2 production could be exported or monetised by selling Certificates of Origin to other European countries.
The project, which will be developed through an innovative digital twin model, is the first of its kind for the development of hydrogen as a sustainable energy source and will be key in the decarbonization process of the Spanish energy sector. For this purpose, the project will commit an initial investment of 50 million, and is expected to reach start of operations by the end of 2022 due to the use of existing infrastructure. The intention is to scale-up the project to 200MW by 2030, implying a total investment of 300 million.
The plant will also generate sustainable employment in the region by giving Boroa's current facilities a future beyond conventional power generation.
Green hydrogen, a lever for decarbonization
This project enhances the commitment of these companies to promote the development of renewable gas as a key energy source in the energy transition. Identified as a lever for the decarbonization process by the European Commission and the Spanish Government, the research and projects around hydrogen are presented as an outstanding opportunity to take advantage of its benefits for the power generation.
Green hydrogen is obtained from electricity produced by renewable energy sources and, thus is a 100% clean and emission-free energy as it only releases water steam after combustion. Some of its main features are its versatility, since it can be used for residential and industrial purposes, as well as its convenient storage and transportation features, enabling it to be used without any degradation at different points in time and places than those when and where it was first obtained. Additionally, it is not necessary to build an alternative infrastructure for distribution, since distribution companies such as Nortegas, can be used to distribute hydrogen, facilitating its development and expansion with maximum use of existing infrastructure.
Projects such as the one in the Amorebieta CCGT plant promote Spain's role as a key player in the production and use of green hydrogen in Europe.
About White Summit Capital
White Summit Capital is a long-term investor and asset manager specialised in identifying superior capital deployment opportunities in the infrastructure and energy sectors. It co-invests with its partners, mainly other investment funds, having deployed a capital of more than 1,500 million in five different assets to date; while at the same time it manages the assets. The company is headquartered in Zug, Switzerland, and has offices in Madrid, London and Mexico City. It has a total of fifteen employees.
For further information: www.whitesummitcap.com
About Castleton Commodities International
CCI is a global energy commodities trader with integrated businesses focused on the sale, trading and marketing of commodities; and the ownership, operation and development of infrastructure assets related to commodities, power plants and upstream assets. CCI acquired Bizkaia Energía S.L.U. in February 2020. Please visit CCI's website for more information: www.cci.com
Media Contact:
Hill+Knowlton Strategies Brian R. Brooks +1 (713) 752-1901 brian.brooks@hkstrategies.com
About Nortegas
Nortegas is the second largest gas distribution company in Spain. It currently serves more than one million customers, to whom it supplies natural gas and LPG through a network of more than 8,000 kilometres deployed in 383 municipalities in the autonomous regions of Asturias, Cantabria and the Basque Country.
The company is headquartered in Bilbao and has operations and work centres in the three communities where it operates, with a total workforce of 250 professionals.
For further information:
Nortegas
Jon Arrieta
Jon.arrieta@nortegas.es
Telephone: (+34) 609 846 281
Kreab
Noa Beade
nbeade@kreab.com
Telephone: (+34) 691 430 138
Miriam Iglesias
miglesias@kreab.com
Telephone: (+34) 91 702 71 70
About SENER
SENER is a private engineering and technology group founded in 1956 that seeks to offer its customers the most advanced technological solutions, enjoying international recognition thanks to its independence and commitment to innovation and quality. SENER has 2,350 employees on the five continents. The group's ordinary operating income exceeds 433 million Euros (data as of 2019).
SENER groups together its own aerospace and engineering activities, as well as industrial holdings in companies working in the power sector. SENER Aerospace has over 50 years of experience and is a top-level supplier to space, defence and science sectors. SENER Ingeniería has become a world reference company in the infrastructure, power and marine sectors.
For further information:
Oihana Casas. Media Relations Manager
Telephone (+34) 91 807 73 18 / (+34) 679 31 40 85
www.group.sener
About Bizkaia Energía
Bizkaia Energia S.L.U. is the direct owner of the Amorebieta CCGT plant.
Currently, Bizkaia Energia is owned by Castleton Commodities International LLC, a leading company focused on the sale of energy products and an investor in energy infrastructure, and White Summit Capital, a long-term investor and asset manager, specialized in identifying capital investment opportunities in infrastructure and energy sectors.
After the liberalization of the electricity sector in 1997 (Law 54/1997 of 27th November), Bizkaia Energía was founded in 1998 to develop the project of building and operating a combined cycle plant.
The construction of the plant started in February 2003. After 30 months of construction, commercial operation began in August 2005.
For further information: www.bizkaiaenergia.com
