Iberdrola to create new business unit to develop green hydrogen

LONDON (Reuters) - Spanish utility Iberdrola IBE.MC said on Monday it would create a new business unit aimed at developing green hydrogen to supply industry and heavy transport.

The company said it will use renewable energy to power electrolysis which splits water into hydrogen and oxygen.

In July, the European Commission mapped out a plan to expand the production and use of green hydrogen.

The aim is to scale up European green hydrogen projects across polluting sectors - from chemicals to steel - to meet a net zero emissions goal by 2050 and become a leader in a market analysts expect to be worth $1.2 trillion (933.85 billion pounds) by that date.

Iberdrola said the first project in Puertollano, in southern Spain, will comprise of a 100 megawatt solar photovoltaic plant, a lithium-ion battery system for storage and an electrolysis system to produce hydrogen.

With an investment of 150 million euros (136.96 million pounds), the plant will be commissioned in 2021.

In Britain, through Iberdrola’s subsidiary ScottishPower, Iberdrola is participating in a project which will implement a network of green hydrogen production plants to supply fleets and heavy transport, it added.

Reporting by Nina Chestney; editing by David Evans