We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Repsol Halts Green Hydrogen Projects in Spain Amid Policy Changes
Read MoreHide Full Article
Spanish energy major Repsol, S.A. (REPYY - Free Report) , has decided to put on hold three of its major projects in Spain, representing a total capacity of 350 MW, due to an unfavorable regulatory framework that might impose a permanent windfall tax on energy companies.
The three hydrogen projects put on hold include a 100 MW project in Cartagena valued at $217 million, a 150 MW project in Tarragona and a 100 MW project in the Basque country. The company has now decided to proceed with an electrolyzer project in Sines, Portugal.
REPPY’s Future Strategy
Spain aims to produce 12 GW of renewable hydrogen by 2030, and Repsol’s projects were tied to 90% of this target, which was close to the final investment decision; therefore, the company’s decision to halt the projects comes as a setback to Spain’s ambitious target.
Although Repsol has paused its Spanish projects, it has decided to continue with its projects in other countries like Portugal, which reflects its commitment toward renewable energy development.
Repsol’s decision proves that although green hydrogen is crucial in decarbonizing Europe’s economy, it is not feasible without subsidies from regulatory bodies.
Impact of REPPY’s Decision on the Natural Gas Industry
The International Energy Agency (“IEA”) highlighted that uncertainties like incentives, regulations and demand are the major barriers to the growth of natural gas worldwide. The same concerns were also highlighted in its latest Global Hydrogen Review 2024, stating that although there is some progress in the investment decisions, the demand still lags.
Repsol, carrying a Zacks Rank #5 (Strong Sell) currently, is not alone in reevaluating its investment decision in renewable hydrogen. Other major energy giants like Shell plc (SHEL - Free Report) and Equinor ASA (EQNR - Free Report) have also stalled their renewable hydrogen projects in Europe due to low demand and unsupportive regulatory policies.
Norwegian unit of the British energy giant Shell canceled its blue hydrogen project in the Aukra Hydrogen Hub due to a lack of demand. Norway-based state-owned energy company Equinor also canceled a similar project a few days before.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Repsol Halts Green Hydrogen Projects in Spain Amid Policy Changes
Spanish energy major Repsol, S.A. (REPYY - Free Report) , has decided to put on hold three of its major projects in Spain, representing a total capacity of 350 MW, due to an unfavorable regulatory framework that might impose a permanent windfall tax on energy companies.
The three hydrogen projects put on hold include a 100 MW project in Cartagena valued at $217 million, a 150 MW project in Tarragona and a 100 MW project in the Basque country. The company has now decided to proceed with an electrolyzer project in Sines, Portugal.
REPPY’s Future Strategy
Spain aims to produce 12 GW of renewable hydrogen by 2030, and Repsol’s projects were tied to 90% of this target, which was close to the final investment decision; therefore, the company’s decision to halt the projects comes as a setback to Spain’s ambitious target.
Although Repsol has paused its Spanish projects, it has decided to continue with its projects in other countries like Portugal, which reflects its commitment toward renewable energy development.
Repsol’s decision proves that although green hydrogen is crucial in decarbonizing Europe’s economy, it is not feasible without subsidies from regulatory bodies.
Impact of REPPY’s Decision on the Natural Gas Industry
The International Energy Agency (“IEA”) highlighted that uncertainties like incentives, regulations and demand are the major barriers to the growth of natural gas worldwide. The same concerns were also highlighted in its latest Global Hydrogen Review 2024, stating that although there is some progress in the investment decisions, the demand still lags.
Repsol, carrying a Zacks Rank #5 (Strong Sell) currently, is not alone in reevaluating its investment decision in renewable hydrogen. Other major energy giants like Shell plc (SHEL - Free Report) and Equinor ASA (EQNR - Free Report) have also stalled their renewable hydrogen projects in Europe due to low demand and unsupportive regulatory policies.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Norwegian unit of the British energy giant Shell canceled its blue hydrogen project in the Aukra Hydrogen Hub due to a lack of demand. Norway-based state-owned energy company Equinor also canceled a similar project a few days before.