Repsol Cancels 200MW Green Hydrogen Project in Spain Citing Technical and Economic Barriers

Repsol has hit the brakes on its ambitious 200MW green hydrogen project in Puertollano, Spain, pulling the plug due to a mix of economic and technical hurdles. While the project passed the environmental test, the company says it just doesn’t add up financially or practically—at least not right now. The plan was to build it on the site of an old coal power plant, positioning it as a symbol of Spain’s push towards industrial decarbonization and a cleaner energy future.

Refinery ambitions remain intact

This doesn’t mean Repsol is giving up on green hydrogen altogether. Far from it. The company is sticking to its strategy of integrating renewable hydrogen into operations at its Puertollano refinery to help cut emissions. The decision, however, throws a spotlight on the bigger picture: scaling up hydrogen production in Europe is proving trickier than expected. Between sky-high upfront costs, immature tech, murky policy frameworks, and a shaky market, the road to a sustainable energy economy is anything but smooth.

A blow to the local economy

Pulling the project is also a blow to the Castilla-La Mancha region. Beyond the clean energy goals, the development promised new jobs and fresh investment—opportunities that are now off the table. It’s another reminder that transitioning legacy industrial zones into clean energy hubs is a complex task, and missed chances like this can have local ripple effects.

Not an isolated case

Repsol’s about-face isn’t unique. Across Europe, other large-scale green hydrogen ventures are being shelved or delayed, all reflecting the same underlying issues. The takeaway? If Europe’s serious about reaching its climate targets, it’ll need to move the needle on regulations, lower the economic barriers, and rethink how these innovations are brought to market.