Green hydrogen auction launched for output of 35-MW Spanish project

Iberian gas futures market operator MIBGAS Derivatives and green hydrogen developer DH2 Energy are kicking off the first renewable hydrogen auction on the Iberian market, offering interested companies a chance to bid for hydrogen produced by DH2’s 35-MW Hysencia plant.

The Hysencia project, involving 35 MW of electrolysis capacity, 49 MWp of photovoltaic (PV) power and a 10-MW grid connection, is one of the winners in the first auction of the European Hydrogen Bank. Located in Aragon, the project received integrated environmental approval earlier this year. Construction is expected to begin in mid-2025, with the start of operations slated for in the first half of 2027.

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The auction starts on Friday, November 15, with the publication of the documentation on the MIBGAS website. Open to both domestic and international companies, it will offer different lots based on supply volume and contract duration. There will be three phases -- pre-qualification, qualification stage and bidding. The selected companies will negotiate final agreements with DH2 Energy bilaterally.

“At MIBGAS we are convinced of the potential that green hydrogen has, and projects like Hysencia are crucial to start laying the foundations for a renewable hydrogen market. We are delighted to help drive decarbonisation by developing the green hydrogen market,” stated MIBGAS chairman Raul Yunta.

“For the first time, the operator behind the Iberian market is launching an auction for renewable hydrogen, and it does so with the production from DH2 Energy's Hysencia plant, which will serve as a benchmark in the sector,” noted DH2 Energy managing director Marcos Lopez-Brea Baquero.

Hydrogen is seen as key to decarbonising hard-to-abate sectors, but the new market is not developing as fast as some market participants have been expecting. The European Commission (EC) President Ursula von der Leyen recently confirmed commitment to the sector, with the EU set to hold its second renewable hydrogen auction under the European Hydrogen Bank initiative in December.