Beijing-headquartered Hygreen Energy has confirmed intentions to build a 5GW alkaline electrolyser factory in Spain as part of a €2bn ($2.2bn) European expansion plan.
The Chinese electrolyser OEM today (September 3) said it would build a factory for its 5MW alkaline systems in Malaga that will “comply with European compliance standards.”
Hygreen confirmed to H2 View that the planned capacity for the Malaga facility is 5GW, while stressing that the site’s capacity will depend on the company’s European growth and market demand.
The company could not disclose when the factory is expected to come online, or what capacity is initially expected.
The Spanish manufacturing plans comes in addition to the firm’s existing 2GW of manufacturing capacity in Shandong, China, which is also set to be expanded to 5GW by next year.
As well as the capacity expansions, Hygreen said it plans to build large-scale green hydrogen plants alongside strategic partners in Huelva, Spain.
The likes of Cepsa, Iberdrola and Fertiberia plan to develop the Andalusian Green Hydrogen Valley in the region, although the electrolyser OEM has not named any partners.
Furthermore, the company said it will create an R&D programme to advance electrolyser technologies in addition to a 10MW alkaline system.
The Spanish plans go “above and beyond” Hygreen’s recent agreement with Coxabengoa, Voltan and Kemtecnia, which it said, “are designed to create a comprehensive ecosystem for Hygreen Energy’s electrolyser customers, project developers and EPC providers.”
“By establishing an electrolyser factory, launching an R&D programme, and developing green hydrogen plants, Hygreen Energy will be well positioned to capitalise on the burgeoning hydrogen market in Europe,” said Hygreen Energy CEO, Benny Wang.
The firm emerged in June as the internationally facing brand of Beijing SInoHy Energy Co. Founded in 2007, the company said it aimed to secure a place as a “leading” international electrolyser player.
Read more: Chinese electrolyser OEM repositions for global expansion, targets 5GW capacity by 2025
Initially revealing plans to establish bases in Spain, Canada, Dubai and more, Hygreen’s Global Marketing Director, Ethan Hugh, told H2 View, by 2025, the firm expects international markets to overtake domestic demand for its equipment.
“North America, Europe, and Australia for example have come forward with policies and incentives.
“But incentives come with timelines and deadlines, and that means projects are suddenly coming on board and looking at different options of supply, and we are seeing that demand come through,” he explained.
Read more:Chinese electrolyser OEM anticipates surging non-domestic demand by 2025
Spain has emerged as one of Europe’s green hydrogen production hot spots. With plans to build 11GW of electrolyser capacity by 2030, the country is expected to supply large volumes of the energy carrier to industrial regions in Europe’s northwest.
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