Fertiberia and Cepsa form a strategic alliance to boost green hydrogen production and decarbonize industry in Huelva

22 Feb 2023 12:33 CET

The agreement will allow the two companies to independently meet the green
hydrogen consumption target for industry set by the government for the whole of
Spain by 2030
Fertiberia and Cepsa form a strategic alliance to boost green hydrogen
production and decarbonize industry in Huelva

• This is the largest agreement signed to date, as they are Spain's top hydrogen
producers and consumers, accounting for more than a third of national
consumption.

• The two companies will further invest into the development of the Andalusian
Green Hydrogen Valley in Huelva to jointly optimize their decarbonization plans,
including the production of green hydrogen and other renewable gases.

• They will create a pioneering circular economy for hydrogen production,
ensuring the supply of the new renewable energy vector to the area's entire
industrial fabric and strengthening synergies between their plants.

• As a part of the agreement, they will also consider production of renewable
fuels (green methanol and ammonia) in Huelva and other provinces in mainland
Spain.


Cepsa and Fertiberia, two of Spain's largest hydrogen consumers, have reached an
agreement to decarbonize their production processes by jointly developing a
large-scale renewable hydrogen plant in Huelva using green energy and other
renewable gases. The companies will also implement other industrial synergies
between their Huelva sites.

Through this union, Cepsa and Fertiberia have become strategic partners in the
project to develop 1 GW of electrolysis capacity in Palos de la Frontera as part
of the Andalusian Green Hydrogen Valley.

This valley will have a 2 GW capacity—1 GW in Campo de Gibraltar (Cádiz) and
another in Palos de la Frontera (Huelva)—and production of up to 300,000 tons in
Cepsa's Energy Parks.

The agreement will meet the hydrogen and biogenic CO2 needs of both companies’
facilities in the industrial fabric of Palos de la Frontera (Huelva) in the most
optimal way. Green hydrogen production will begin in 2026, and it will be used
for Cepsa's and Fertiberia's own industrial consumption while enabling the
manufacture of advanced biofuels, ammonia, AdBlue and sustainable crop nutrition
solutions.

Cepsa's La Rábida Energy Park is adjacent to Fertiberia's facilities in Palos de
la Frontera. Therefore, the partnership will help to leverage all existing
industrial and operational synergies between the two sites, allowing them to be
managed as efficiently as possible.

The alliance will allow a circular hydrogen and oxygen economy to be developed
in Huelva. The construction of this infrastructure will be a pioneering
engineering project, connecting hydrogen producers with consumers to ensure a
more sustainable, efficient and competitive energy supply. It will take
advantage of synergies between all nearby industries while guaranteeing their
secure supply.

Upon signing this agreement, Maarten Wetselaar, CEO of Cepsa, said: "We are
adding a new strategic partner to the Andalusian Green Hydrogen Valley to
continue promoting the decarbonization of industry in Huelva and make it a
benchmark for sustainability in Europe. Our agreement with Fertiberia is a major
step forward in our commitment to green hydrogen as a key energy vector to
decarbonize our own activity and that of our customers."

According to Javier Goñi, CEO of Grupo Fertiberia, "Our alliance with Cepsa is
significant, as it implies a collaboration between the two companies with the
longest industrial tradition in the province of Huelva and which account for
nearly all the hydrogen consumption in Andalusia today. This alliance will make
Huelva's green hydrogen production more competitive, becoming a source of
opportunities for multiple companies along the value chain. It will also further
the full decarbonization of our assets and our positioning as a leader in green
ammonia and sustainable crop nutrition solutions."

The Hydrogen Roadmap, established by the Spanish government, sets a target for
25% of hydrogen consumption in industry to be renewable by 2030, both as a raw
material and as an energy source. Through this agreement, Cepsa and Fertiberia
will decarbonize their consumption by using green hydrogen, jointly meeting the
target set for the whole of Spain by the end of the decade.

As a part of their agreement, the two companies will also consider producing
renewable fuels (green methanol and ammonia) in both Huelva and other provinces
in mainland Spain.

This new alliance is part of Cepsa's 2030 Positive Motion strategy, through
which the company is transforming itself to become a benchmark in the energy
transition, leading sustainable mobility in Spain and Portugal, as well as the
production of renewable hydrogen and advanced biofuels. Cepsa will promote the
decarbonization of its customers, as well as its own activity, reaching net zero
emissions by 2050.

For Fertiberia, this alliance represents a new milestone in its strategy to
accelerate the growth of its green ammonia production and to become the first
company in its sector worldwide to achieve carbon neutrality by 2035. Fertiberia
already markets the Impact Zero product line, which contributes to the
decarbonization of food and beverage production while promoting fully
sustainable agriculture in Europe.

The alliance between Cepsa and Fertiberia contributes to several of the 2030
Agenda’s Sustainable Development Goals: SDG 7 (Affordable and clean energy), SDG
8 (Decent work and economic growth), SDG 12 (Responsible consumption and
production), and SDG 13 (Climate action).

About Cepsa

Cepsa is a leading international company committed to sustainable mobility and
energy with a solid technical experience after more than 90 years of activity.
The company also has a world-leading chemicals business with increasingly
sustainable operations.

In 2022, Cepsa presented its new strategic plan for 2030, Positive Motion, which
projects its ambition to be a leader in sustainable mobility, biofuels, and
green hydrogen in Spain and Portugal, and to become a benchmark in the energy
transition. The company places customers at the heart of its business and will
work with them to help them advance their decarbonization objectives.

ESG criteria inspire all of Cepsa's actions as it advances toward its net
positive objective. Over the course of this decade, it will reduce our Scope 1
and 2 CO2 emissions by 55% and the carbon intensity index of our products by
15-20%, with the goal of achieving net zero emissions by 2050.

About Fertiberia

Fertiberia is a leader in the crop nutrition sector in Europe and producer of
environmental solutions for industry and other sectors. The company has 14
production centers throughout the Iberian Peninsula and France. Fertiberia
aspires to lead the green hydrogen value chain of the future in Europe,
decarbonizing agriculture and other sectors, such as industry and transport,
while continuing to spearhead development of sustainable and high-value-added
solutions for crop nutrition. It is also the first company in its sector to
commit to achieving net zero emissions by 2035. Fertiberia is owned by Triton
Partners, which is driving growth to make this Spanish company a leader in the
fertilization of the future, enabling farmers to obtain higher yields in the
most sustainable way possible.

https://www.grupofertiberia.com/
Huelva, February 22, 2023

Cepsa – Communications
medios@cepsa.com
www.cepsa.com
Tel.: (34) 91 337 60 00

Fertiberia – Communications
rocio.dominguez@fertiberia.es
www.grupofertiberia.com
Tel.: (34) 915 86 62 00

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