MADRID, Sept 10 (Askume) – Spain said on Tuesday it has signed a deal with Envision Group (1783.HK) to build a $1 billion factory to make machinery for producing green hydrogen for the Chinese group.
A memorandum of understanding shows that Envision Energy will begin building the factory by June 2026 to produce electrolysers — machines that separate hydrogen from water.
The Chinese company will reportedly finance the project along with private partners at an undisclosed location.
Envision Energy will also invest in green hydrogen production, the entire green hydrogen value chain, and help develop other related industries such as fertilizers and biochemicals.
The company is currently in talks with potential Spanish and European partners for renewable energy deals, specifically e-methanol, green hydrogen and green infrastructure, the memo said.
Green hydrogen is produced using renewable electricity, with Spain taking advantage of its abundant wind and solar potential to establish itself as a European leader in this field.
While green hydrogen schemes are seen as key to the future decarbonisation of the European economy, they are generally uncompetitive without subsidies due to their high costs.
Two years ago , Envision Energy signed a 3.8 billion euro ($4.19 billion) investment deal with Spain, including a car battery “gigafactory” and a green hydrogen project.
The document signed on Tuesday did not say whether the planned electrolysis plant was part of the 2022 plan.
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