China's Envision to invest $1 bln in Spain to make green hydrogen machinery

Envision Greenwise Holdings

10/09/2024 14:47

MADRID, Sept 10 (Reuters) - Spain said on Tuesday it had
signed a deal with Envision Group  1783.HK  for the Chinese
group to build a $1 billion plant to manufacture machinery used
for the production of green hydrogen.
    A memorandum of understanding showed Envision would start
building the factory that will produce electrolysers - the
machinery separating hydrogen from water - by June 2026.
    The Chinese company will finance the project in Navalmoral
de la Mata, located some 190 km (118 miles) to the southwest of
Madrid, with private partners, it said.
    Envision is also set to invest in green hydrogen production,
the whole green hydrogen value-chain and helping to develop
other related industries such as fertilisers and biochemicals.
    The company is currently negotiating further renewable
energy deals, specifically in e-methanol, green hydrogen and
green infrastructure, with potential Spanish and European
partners, the memorandum said.
    Green hydrogen is produced using renewable electricity and
Spain is positioning itself as a leader in the field in Europe,
taking advantage of its abundant wind and solar power potential.
    While it is seen as key to decarbonising Europe's economy in
the future, green hydrogen projects in general are not
competitive without subsidies due to their high costs.
    Two years ago, Envision signed a deal with Spain on
investments worth 3.8 billion euros ($4.19 billion), including a
car battery "giga-factory" and green hydrogen projects. 
    The document signed on Tuesday did not say whether the
planned electrolyser plant was part of the 2022 project.
    ($1 = 0.9066 euros) 

 (Reporting by Inti Landauro; Editing by Alexander Smith)
 ((Inti.Landauro@thomsonreuters.com;))