Repsol has suspended its planned green hydrogen projects in Spain, totaling 350 megawatts (MW) of electrolysis capacity, due to an unfavorable regulatory environment, according to a company spokesperson.
The Spanish energy giant had previously cautioned that regulatory uncertainties, including the potential redesign of a windfall tax on energy companies and banks, could hinder its investments in the emerging green hydrogen sector.
Spain has set a target of 12 gigawatts (GW) of green hydrogen production capacity by 2030, and Repsol's decision could impact the country's broader green energy objectives.
Among the projects paused is a 100 MW initiative in Cartagena, with an estimated investment exceeding €200 million. Other projects in Tarragona and the Basque Country, with capacities of 150 MW and 100 MW, respectively, have also been shelved.
Repsol's spokesperson revealed that the company's next electrolyser will be built in Portugal. While green hydrogen is critical to Europe's decarbonization goals, its high costs mean that projects often rely heavily on subsidies to be economically viable.
