The Tarraco H2 project, led by H2PRO and Sun Systems Group, has formally presented its strategy to produce green hydrogen from renewable energy sources for the Tarragona petrochemical hub. The goal is to achieve a selling price close to the current production cost of grey hydrogen, which is derived from fossil fuels and is typically consumed by this industrial complex.
The key figure is reaching 4 euros per kilogram of green hydrogen. This price, aligning with the European Commission's limit for fixed premiums, approaches the estimated production cost of grey hydrogen in Spain, which the European Hydrogen Observatory places below 3 euros per kilogram. Achieving these targets would represent a significant market disruption, making green hydrogen highly competitive for industrial applications.
The core technology is an electrolyzer developed by the Israeli company H2PRO, supported by investors such as Breakthrough Energy Ventures, the climate fund founded by Bill Gates. In partnership with the Tarragona-based Sun Systems Group, which will provide photovoltaic generation, a first operational phase is planned for 2030 with an initial capacity of 25 MW. The estimated investment for this phase is 18 million euros, plus an additional 25-27 million for the photovoltaic installations.
The location in the La Boella area, between municipalities like Reus and Constantí, and close to the Port of Tarragona and petrochemical plants, will enable on-site photovoltaic electricity generation and direct supply to the electrolyzer without connection to the general grid (off grid). This will avoid electricity toll costs. Furthermore, its strategic position will facilitate exports via the Port of Tarragona and connection to Enagás's future green hydrogen transport network.
While the reduction in operating costs (Opex) is significant, the key to achieving the target price lies in lowering capital expenditure (Capex). The estimated 18 million euros for a 25 MW installation equates to approximately 720,000 euros per MW, a figure substantially lower than the roughly 2 million euros per MW currently seen in the sector for new electrolyzers.
Joel Alerhand, from H2PRO, explained that this significant reduction in capital costs is due to the company's proprietary technologies, which are now being validated with a 500 kW pilot plant. Subsequently, in December 2027, a 5 MW demonstration plant will be launched in Extremadura, which will become a 24 MW commercial project in 2029. Finally, in 2030, the strategic 25 MW project in La Boella will commence, capable of producing around 1,250 tons of hydrogen annually.
H2PRO's differentiating technology is "decoupled water electrolysis," featuring a "membrane-less architecture" that significantly reduces costs by using abundant and inexpensive metals instead of expensive ones like platinum. If they succeed in maintaining competitive prices and securing demand, they plan to scale the facility up to 150 MW by 2032.
