World-leading Chinese electrolyser manufacturer Hygreen Energy has announced its intention to invest with its partners in green hydrogen projects in the southern Spanish region of Andalusia.

The investment, which totals in excess of $2 billion, will finance a new, 5 gigawatt electrolyser production plant and a number of green hydrogen plants.

Green hydrogen is produced using renewable electricity and is seen as key to Europe’s decarbonisation strategy. However, due to their high cost, green hydrogen projects in general are not competitive without subsidies.

Andalusia has abundant wind and solar power potential and is positioning itself as a green hydrogen leader in Spain and Europe.