Repsol is stepping up its industrial decarbonisation strategy through renewable hydrogen, announcing plans to install its second large-scale electrolyser at the Petronor refinery in Muskiz, near Bilbao in northern Spain.
The new 100 megawatt (MW) electrolyser will require an investment of €292 million ($347m) and is scheduled to be commissioned in 2029. Recognised by the European Commission as an Important Project of Common European Interest (IPCEI), the project will be supported by the Spanish government and receive €160 million ($190m) in funding through NextGenerationEU under Spain’s Recovery, Transformation and Resilience Plan.
Once operational, the facility will be capable of producing up to 15,000 tonnes of renewable hydrogen per year, primarily for use in processes at the Petronor refinery. As part of the Basque Hydrogen Corridor, it will also supply renewable gas to regional industry, supporting decarbonisation efforts and preventing up to 167,000 tonnes of CO₂ emissions annually. Repsol said this reduction is equivalent to the emissions avoided by around two-thirds of Spain’s fully electric vehicle fleet in 2024.
The project represents a significant technological challenge due to its scale and is expected to generate around 900 direct, indirect and induced jobs across its development phases.
Repsol has already made progress at Petronor in renewable hydrogen. In 2023, a 2.5 MW electrolyser entered operation, producing around 350 tonnes of renewable hydrogen annually to supply the refinery and Petronor’s offices in the Abanto Zierbena technology park. In 2024, construction also began at the Port of Bilbao on a second 10 MW electrolyser, which will supply a synthetic fuels demonstration plant being developed by Repsol in partnership with Aramco, due to start operations in 2026.
Repsol currently leads hydrogen production and consumption in the Iberian Peninsula, accounting for 60% of national production and around 4% of European consumption. In September 2025, the company approved construction of its first large-scale 100 MW electrolyser at its Cartagena complex.
Looking ahead, Repsol plans to add a further large electrolyser at its Tarragona complex with a capacity of 150 MW. Like the projects in Cartagena and Petronor, the facility will primarily supply Repsol’s industrial operations and is also expected to provide renewable hydrogen to the future Ecoplanta project, which aims to produce renewable methanol from municipal waste, as well as to other local industries.
