20-02-2023

Cepsa and ACE Terminal to create green hydrogen supply chain from Spain to the Netherlands

Cepsa and ACE Terminal have signed a Memorandum of Understanding (MoU) by which the Spanish energy company will supply green ammonia to the planned import terminal in the port of Rotterdam, for end use applications in the industry after conversion of the ammonia back into hydrogen, or for direct end use in the shipping and other industries in Northwest Europe.

Cepsa is developing 2GW of green hydrogen at its two Energy Parks in Andalusia, southern Spain, as part of its 2030 Positive Motion strategy to become a leader in sustainable mobility and the production of renewable hydrogen and advanced biofuels and a benchmark in the energy transition. The two hydrogen plants, with a 3 billion euro investment, will form part of the Andalusian Green Hydrogen Valley, the largest green hydrogen hub in Europe, for which Cepsa has recently signed a number of partnership agreements across the hydrogen value chain.

On the import side, Gasunie, HES International and Vopak have partnered to develop ACE Terminal as an entry point to the Netherlands for ammonia as a carrier for green hydrogen as well as a sustainable feedstock. The open access terminal will be located in the port of Rotterdam, a very important port for Northwest Europe from an energy point of view. With the planned reuse of assets and infrastructure, ACE Terminal is a project with a short time to market. The MoU with Cepsa is the first of agreements aimed between additional clients and the ACE open access hub terminal for green hydrogen and ammonia imports.

The MoU between Cepsa and ACE Terminal entails a cooperation intended to lead to a binding commercial agreement to facilitate the oversea transport of green ammonia, to redistribute the green ammonia to end markets in the hinterland, and to process the green ammonia into green hydrogen ready for use by end customers in Northwest Europe. The location of ACE Terminal in the port of Rotterdam offers direct connection to Rotterdam's industry and the planned national hydrogen network, and has an excellent connection to the infrastructure into Northwest Europe.

By importing green energy that can be produced competitively by Cepsa in southern Spain thanks to conditions such as ample sun, wind and land, a solid electricity grid and access to high traffic ports, the alliance helps to decarbonize industry and transport in the North and ensure energy independence, security and affordability in Europe.