Spanish multi-energy group Repsol SA (BME:REP) will install a 100-MW electrolyser to produce renewable hydrogen at its Petronor refinery in northern Spain, investing EUR 292 million (USD 346m) in a project due to start operations in 2029, the company said.

The electrolyser, to be located at the Petronor site in Muskiz, in the Basque province of Bizkaia, has been recognised by the European Commission as an Important Project of Common European Interest (IPCEI). As such, it will receive EUR 160 million in support from Spain’s government via the EU’s NextGenerationEU recovery funds, Repsol said.

With an annual production capacity of up to 15,000 tonnes of renewable hydrogen, the facility will mainly supply the Petronor refinery, replacing fossil-based hydrogen used in industrial processes. Repsol said the project would help avoid up to 167,000 tonnes of carbon dioxide emissions per year.