Naturgy Energy Group SA (BME:NTGY) and Enagas SA (BME:ENG) are poised to secure a substantial EUR-42-million (USD 45.1m) grant from the European Union to bolster their La Robla green hydrogen initiative situated in the Castile and Leon region of Spain.

The European Commission, recognizing the potential of the project, has recommended it for funding through the Innovation Fund. Consequently, the Robla Hub joint venture (JV) comprising Naturgy and Enagas Renovable, the renewable gases unit of Enagas, has been invited to formalize the grant agreement, marking a significant milestone for the collaborative effort that was initially unveiled nearly a year ago. The ambitious plan outlined an investment of approximately EUR 485 million.

At the heart of the La Robla green hydrogen project is a production plant boasting an impressive electrolysis capacity of up to 280 MW. The strategic location of the facility is the site of Naturgy's now closed La Robla thermal power plant, scheduled for full dismantlement by 2024. The visionary project extends beyond the hydrogen production plant itself, with plans to incorporate several solar farms in municipalities surrounding La Robla. These solar installations will power the electrolysers, forming a comprehensive and sustainable energy ecosystem.

The financial backing from the European Union, amounting to EUR 42 million, is a testament to the regional and international significance of the La Robla green hydrogen project. The Innovation Fund's support aligns with the broader objectives of the European Commission to promote innovative and sustainable solutions that contribute to the continent's climate goals. This funding not only propels Naturgy and Enagas closer to realizing their green hydrogen ambitions but also serves as a noteworthy endorsement of their commitment to advancing clean energy technologies.

The involvement of Fertiberia, a major player in the fertiliser industry, adds an industrial dimension to the La Robla green hydrogen project. As a significant off-taker of the produced green hydrogen, Fertiberia becomes a key partner in realizing the project's economic and environmental objectives. The collaboration between the energy sector represented by Naturgy and Enagas and the industrial sector represented by Fertiberia exemplifies the cross-sectoral partnerships essential for driving meaningful progress in the transition to a sustainable energy future.

Looking ahead, the successful formalization of the grant agreement will mark a critical milestone in the timeline of the La Robla green hydrogen project. The financial injection from the European Union provides the necessary impetus to propel the initiative from planning and development to the actualization of a state-of-the-art green hydrogen production facility. Moreover, the project's focus on supporting local municipalities through the installation of solar farms aligns with broader community-centric sustainability goals, fostering regional economic development and resilience.