Nel Hydrogen Electrolyser and Iberdrola have signed a memorandum of understanding (MoU) to collaboratively develop a green hydrogen production plant with a capacity exceeding 200MW in Spain.

Under the MoU, the two companies have also agreed to jointly develop a green hydrogen technology value chain in the country.

Nel CEO Jon André Løkke said: “Just as Iberdrola in the past successfully contributed to developments in the wind industry, they are now doing the same within hydrogen.

“Getting visibility on significant offtake volumes, and working together on the value chain through scale-up, will contribute massively to the overall cost reductions.”

The companies have agreed to initiate strategic discussions and start the project immediately. They also aim to establish a 20MW plant and begin its operations next year.

By 2023, the two parties have set a target to deploy more than 200MW electrolysers.

Iberdrola chairman and CEO Ignacio Galán said: “This initiative will accelerate the production of green hydrogen in Spain and create a new industry, the manufacturing of electrolyser systems, with high growth potential.

“We continue to make progress in our ambitious plan to put Spain and Europe at the global forefront of this technology by reducing energy dependence and fossil fuel consumption while driving the country’s economic and social revitalisation.”

Last month, Iberdrola and Fertiberia announced a partnership to install 800MW of green hydrogen production capacity with a €1.8bn investment over seven years.

The companies plan to commission their green hydrogen complex next year for industrial use in Puertollano after a €150m investment.