Toledo. Image by javier alamo from Pixabay

Power solutions company Cummins has announced plans to build a €50 million ($61 million) PEM electrolyzer plant for the production of green hydrogen in Castilla-La Mancha, Spain.

A site selection search for the 22,000 square meter plant is currently underway. The plant will house system assembly and testing for approximately 500MW/year and will be scalable to more than 1 GW/year. The facility is anticipated to open in 2023 and will create 350 new jobs as production ramps up.

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Cummins has received significant support from the Castilla-La Mancha and national Spanish governments as the plant will reduce greenhouse gas emissions and meet the objectives of the Spanish and European hydrogen strategies. The plant will also enable Cummins to achieve carbon neutrality by 2050 as outlined in the company’s Planet 2050 sustainability strategy.

Cummins chairman Tom Linebarger said Spain “offers a strong and dynamic local environment for hydrogen production”.

“We believe that this is just the start of our expansion into new markets, bringing new clean technology to customers, and supporting efforts to bring the European Union’s Green Deal to fruition.”

This investment follows the announcement of an alliance between Cummins and Iberdrola to accelerate the growth of business opportunities in the electrolyzer market of Iberia, thereby promoting the development of Spain’s green hydrogen value chain.

The alliance includes a 230MW green hydrogen project in Palos de la Frontera, Andalusia, that Iberdrola has planned for the fertilizer producer Fertiberia.

Cummins will be the electrolyzer supplier for the Palos project and through the experience acquired in the project, the companies will collaborate on the design of solutions for large electrolysis projects. Cummins and Iberdrola are also collaborating on a hydrogen refueling station in Barcelona with additional partnership opportunities anticipated in the future.

Ignacio Galán, cairman and CEO of Iberdrola, said: “This initiative will accelerate the production of green hydrogen in Spain and will create a new industry, the manufacturing of electrolyzer 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 revitalization.”

In Castilla-La Mancha, Iberdrola operates 2,376MW of wind and photovoltaic power and recently completed three photovoltaic projects in the region, totaling 150MW.