Spain’s efforts to position itself as a leader in green hydrogen are beginning to pay off. Chinese energy giant Envision has committed to investing over $1 billion in the construction of a green hydrogen factory in Spain.
The announcement was made during Spanish Prime Minister Pedro Sánchez’s recent visit to Shanghai, where he met with Envision Energy’s President, Lei Zhang.
1,000 Jobs and a new energy hub by 2026
The project will focus on developing a factory for the production of electrolyzers, essential for generating green hydrogen. The plant is expected to create over 1,000 direct and indirect jobs. Furthermore, it will have the capacity to produce 5 gigawatts (GW) of electrolysis. This will be a significant step toward Spain’s goal of generating 11 GW of green hydrogen by 2030.
Construction on the factory is slated to begin in the first half of 2026. The location has not yet been confirmed. However, reports suggest it may be built in either the Levante region or Andalucia.
Strengthening Spain’s energy ties with China
Envision’s investment in Spain is part of a larger, ongoing partnership between the two countries. In 2022, Spain and Envision signed a $3.8 billion agreement for the development of three renewable energy plants, including a gigafactory in Extremadura, a green hydrogen facility in Castilla-La Mancha, and a wind farm in Castilla y León. Envision is also considering establishing its European headquarters in Spain, drawn by the country’s wealth of renewable energy resources.
A long-term strategy for green hydrogen
Green hydrogen is seen as a key player in the future of sustainable energy, but it requires substantial investment. While Spain is still working to make this energy source more cost-effective, it has successfully attracted foreign investment through subsidies and tax credits. Envision’s commitment underscores confidence in Spain’s green energy strategy and the potential for the country to become a major hub for green hydrogen production.
Also read: Andalucian Green Hydrogen Valley: new jobs and clean energy