Speech by the President of the Government of Spain at the launch of the Andalusian Green Hydrogen Valley project in Palos de la Frontera (Huelva)

SPEECH BY THE PRESIDENT OF THE GOVERNMENT OF SPAIN, PEDRO SÁNCHEZ

Good morning, first of all, to the Third Vice-president, dear Sara; the President of the Regional Government of Andalusia; the mayors; the Government Delegate; Maarten, CEO of MOEVE; the Secretary of State for Energy; the Regional Minister; the authorities; ladies and gentlemen.

Just a few weeks ago, not far from here - about 30 kilometres from where we are today - the Huelva countryside was engulfed in flames; the largest fire in our history ravaged tens of thousands of hectares in this province, and for days we watched the flames advance, villages under threat, families evacuated, and hundreds of professionals risking their lives and safety to contain the fire.

Today, we are obviously in Huelva for a very different reason. And I believe there is a link between the two, just as is happening right now in the Mediterranean, as a result of the storms and cold fronts caused by the climate emergency.

Because that fire laid bare the consequences of a climate emergency which, as the CEO of MOEVE rightly pointed out earlier, has not gone away; on the contrary, it is getting worse year on year.

And this project also shows us part of the solution to adapting to and mitigating the climate emergency. But it does not merely show us part of the solution; it also reveals another aspect which I feel it is important to highlight here today, from this platform, namely that it forms part of the future of Huelva - as has been discussed - the future of Andalusia, the industrial and energy future of our country, Spain, and, of course, Europe as well.

Because that is what we are talking about today; as the CEO of MOEVE rightly said earlier, we are talking about that molecule, about green hydrogen. About producing clean energy that can replace oil or gas in areas where, let's face it, it is still very difficult to do so today.

And that, of course, changes a lot of things. Firstly, it changes the way we produce things. Because industries and transport sectors that currently rely on fossil fuels will be able to drastically reduce their emissions by using clean energy produced here in Huelva, in Spain, in Europe, as Vice-president Teresa Ribera rightly pointed out.

But it also changes our place in the world. For decades, Spain and Europe have relied too heavily on energy supplied from elsewhere.

Unfortunately we still do. Every international crisis - and the wars in Iran and Ukraine have been mentioned here earlier - serves as a reminder of the price, the enormous price, that we are paying for that dependence. A war that is driving up prices - we are seeing this happen again as a result of the war in Iran. Geopolitical tensions that could cause serious difficulties for businesses and industries, and a threatened trade route, could affect our entire economy - not just the Spanish economy, but also the European and global economies.

That is why I believe it is very important to emphasise the significance of what we are celebrating today, because producing more energy here is not just a climate issue - although that alone would be reason enough - it is also a question of autonomy, of what is known as sovereignty, and of security. We cannot leave our energy supply at the mercy of unjustified wars, tensions beyond our control, or the legitimate geopolitical interests of other powers - interests which are not our own - nor, of course, can we be left to pick up the pieces for those who turn energy into yet another pawn in their power games.

This transformation, therefore, is not just about protecting ourselves better against crises, although that is also very important. It also involves seizing a huge industrial opportunity - and I repeat, a huge industrial opportunity.

Because the energy transition is already driving investment - not only public but also private - because it is also transforming our technology, because it creates jobs - as the CEO of MOEVE has already said - and because it also generates value chains that remain in Spain, in Huelva, in Andalusia and, consequently, in Europe. And now, even more so over the coming decades.

This, therefore, is what Spain wants. It wants to be among the countries leading this ecological transition, this energy transformation and, consequently, the green reindustrialisation of our country. And this project is a good example of that.

We have seen this before in various presentations given to us by the company. The figures provided by the other speakers are also relevant, but I think it is very important to repeat them here, so that we can see the significance of what we are presenting today.

This first phase of the Andalusian Green Hydrogen Valley is set to involve an investment of no less than 1 billion euros. It will have an initial capacity of 300 megawatts, expandable to 400 megawatts - or 405 megawatts, to be precise. And it will be able to produce around 50,000 tonnes of renewable hydrogen energy per year. Consequently, the Andalusian Valley as a whole could have a capacity of up to 2,000 megawatts, an investment of 3 billion euros and a total output of 300,000 tonnes.

And most importantly, the most important thing is not to memorise these figures. The important thing is to understand what these figures mean. They mean that these industries will be able to operate with lower CO₂ emissions. They mean around 250,000 tonnes less CO₂ being emitted into the atmosphere each year, as Teresa Ribera rightly pointed out earlier. They mean more than 3,700 direct jobs whilst the project is underway. And they mean more than 400 small and medium-sized enterprises actively participating in this project.

In other words, cleaner energy, greater self-sufficiency and more opportunities here in Huelva and in Andalusia.

And this is just the first step. Because the Government of Spain is, clearly, supporting this transformation. We are doing this, moreover, dear Maarten, with great enthusiasm; as you well know, the Government of Spain is supporting this transformation.

Not only are we doing that, but we have turned green hydrogen into a genuine national project, at a time when very few people believed in it. We in the Government of Spain have believed in this; we have channelled the expertise of the General State Administration and the resources provided by the Next Generation funds. And so, we have launched a major national project based on green hydrogen.

We have done this, on the one hand, through measures aimed at creating a market and stimulating demand, for example by introducing mandatory minimum targets for emissions reductions and the uptake of renewable fuels across all modes of transport.

Ultimately, what we want is to provide certainty - which is, of course, what businesses are also seeking in order to make the major investments required by the energy transition. To provide certainty for investment, expand the range of opportunities, and facilitate the implementation of industrial projects in the region.

And, on the other hand, Madam Vice-president, we have already allocated more than 3 billion euros to over 120 renewable hydrogen projects. This MOEVE project has received more than 300 million euros in public funding.

So, what I mean to say is that we have supported the sector every step of the way - from research and technological development right through to manufacturing, commercial roll-out and end-user consumption.

And we don't just want to produce green hydrogen molecules, as Maarten said earlier - although we certainly do want to do that. We are aiming for something more. We aim for them to be manufactured using electrolysers, valves, compressors and all other equipment produced here in Spain. That is what we mean when we talk about those small and medium-sized enterprises and the ecosystem we want for our country.

Ultimately, all this progress has been driven by an ongoing dialogue with the sector. I believe it is very important to recognise that today, thanks to these transformations - in the energy and digital sectors - this public-private support, this public-private partnership that we have been promoting since the pandemic, is extremely important and relevant. We have done this through the Renewable Hydrogen Advisory Group in order to adapt all the regulations and support mechanisms to their needs.

And we will not stop there. Over the next few days, we will be kicking off the planning process for the first sections of the hydrogen backbone network, which are known as Projects of Common Interest.

The Government's response to the crises we have been facing for years now in Iran and in Ukraine - for years in Ukraine, and for months in Iran - therefore involves not only protecting consumers and productive sectors, but also accelerating the energy transition. This means electrification, making progress in renewable energy generation, and replacing fossil fuels with renewable hydrogen in those industrial sectors where this is the best solution, both now and in the future.

I believe this is the way forward, ladies and gentlemen. This is the way forward. And in the face of siren calls to take a step backwards, I believe that Spain, Andalusia and Huelva cannot afford to pass up the opportunity to build a solid, competitive and sustainable industrial project - not only from an energy perspective, but also from a social and regional one - based on these green energies, which are clearly our main energy supply and our raw material.

A future that is already a reality here in Huelva, through projects such as this one by MOEVE. In many other similar projects, which will, of course, have the support of the Government of Spain.

And I'll end as I began. A few weeks ago, Mr President, we were looking at this province in much the same way as we did at the start of this summer, with the tragic fire in Almería.

A few weeks ago, as I was saying, we looked at this province and saw fire and suffering. Today, when we look at this region - this very region - we see investment, we see jobs, we see innovation and, therefore, we see hope. One thing does not negate the other, of course, but it does remind us of something very important: when faced with the climate emergency, it is not enough simply to lament its consequences. We need to tackle the root causes. And we can do so by simultaneously building - through public-private collaboration like the one we are showcasing today - a stronger, more prosperous, more sovereign and more autonomous country.

That is also what we are discussing here today, speaking from Huelva to the rest of Spain and Europe. That, ladies and gentlemen, is what the Hydrogen Valley represents. Part of the solution. And, above all, a part of the future we want to build.

Thank you.

(Transcript edited by the State Secretariat for Communication)