Global power leader Cummins Inc. (NYSE: CMI) joined today
government leaders and partner Iberdrola, one of the world’s
largest energy companies, to announce its plans for one of the
world’s largest electrolyzer plants for the production of green
hydrogen to be located in Castilla-La Mancha, Spain. This
investment in Spain comes on the heels of Iberdrola and Cummins’
decision to partner together on large-scale hydrogen production
projects in Spain and Portugal.
The companies have signed an agreement to accelerate the growth
of business opportunities in the electrolyzer market of Iberia,
promoting the green hydrogen value chain and making Spain a leader
of this technology and industry. This alliance helps to position
Cummins as a leading supplier of electrolyzer systems for
large-scale projects in Iberia and Iberdrola as a leading developer
of electrolyzer projects and hydrogen supplier to final industrial
customers.
“Spain offers a strong and dynamic local environment for
hydrogen production, and we are excited to invest here and
significantly increase our manufacturing capacity in Europe,” said
Tom Linebarger, Chairman and CEO of Cummins. “Our partnership with
Iberdrola will connect us with a major clean energy company and
strategically positions us to be a European leader in green
hydrogen production. We believe that this is just the start of our
expansion into new markets, bringing new clean technology to
customers, and supporting efforts to bring the European Union’s
Green Deal to fruition. As communities move toward zero emissions,
this is the latest example of Cummins’ global effort to achieve
carbon neutrality and accelerate the hydrogen economy.”
Ignacio Galán, Chairman and CEO of Iberdrola, said, “This
initiative will accelerate the production of green hydrogen in
Spain and will create a new industry, the manufacturing of
electrolyzer systems, with high growth potential. We continue to
make progress in our ambitious plan to put Spain and Europe at the
global forefront of this technology by reducing energy dependence
and fossil fuel consumption while driving the country's economic
and social revitalization.” He added, “We congratulate ourselves on
the choice to locate the project in a region that we value and in
which we maintain a historic presence and commitment. This joint
initiative will contribute to the economic, industrial and quality
employment development in the region and will reinforce its great
innovative commitment to a decisive technology for the
decarbonization of the industry.”
A site selection search within the Guadalajara area of
Castilla-La Mancha is currently underway for Cummins’ new
€50-million PEM electrolyzer plant that will house system assembly
and testing for approximately 500 MW/year and will be scalable to
more than 1 GW/year. The facility, which will initially be 22,000
square meters, is anticipated to open in 2023, creating 350 new
jobs as production ramps up. Cummins is rapidly growing its
capabilities to provide hydrogen technologies at scale, which is
critical to the world’s green energy transition through the
hydrogen economy. Cummins has deployed more than 600 electrolyzers
in 100 countries globally.
As part of this alliance, the 230-MW green hydrogen project in
Palos de la Frontera (Huelva, Andalusia, Spain) - that Iberdrola
has planned for the leading fertilizer producer Fertiberia - will
become a benchmark for large electrolysis projects. Cummins will be
the electrolyzer supplier for the Palos project and through the
experience acquired in the project, Iberdrola and Cummins will
jointly collaborate in the design of solutions for large
electrolysis projects. Cummins and Iberdrola are also collaborating
on a hydrogen refueling station in Barcelona, Spain with additional
partnership and broader collaboration opportunities anticipated in
the future.
Cummins’ ability to construct a state-of-the-art electrolyzer
facility in Spain is a result of the strong support from the
Castilla-La Mancha and Spanish governments. Additionally, with
Spain’s support, this plant and partnership will accelerate the
ability of green hydrogen to play a critical role in reducing
greenhouse gas and air emissions from industrial industries to meet
the goals in limiting global temperature increases laid out in the
Paris Agreement and the European Union’s Green Deal, as well as
help to deploy the Spanish and European hydrogen strategies. The
plant will also enable Cummins to achieve carbon neutrality by 2050
as outlined in the company’s Planet 2050 sustainability
strategy.
Iberdrola has submitted 53 hydrogen-related projects to the Next
Generation EU program, which would activate investments of €2.5
billion to achieve an annual production of 60,000 tn/year. The
green hydrogen production capacity under this plan would be
equivalent to 20% of the national target (4GW installed capacity by
2030) and would ensure that around 25% of the hydrogen currently
consumed by Spain would not generate any CO2 emissions. This and
related Iberdrola hydrogen projects are anticipated to fuel
economic and job growth, contributing to the creation of
approximately 4,000 skilled jobs across 500 local suppliers.
In Castilla-La Mancha, Iberdrola operates 2,376 MW of renewable
energy - wind power and photovoltaic - which makes it the third
autonomous community with the highest 'green' megawatts installed
by Iberdrola in Spain. Recently, the company has completed three
photovoltaic projects in the region, totaling 150 MW, and builds
Puertollano photovoltaic plant (100 MW).
About Iberdrola
Iberdrola is one of the world's biggest energy companies - third
by market capitalization in the world and leader in renewables -
which is spearheading the energy transition to a low carbon
economy. The group supplies energy to almost 100 million people in
dozens of countries. It carries out renewables, networks and
commercial activities in Europe (Spain, the United Kingdom,
Portugal, France, Germany, Italy and Greece), the United States,
Brazil, Mexico and Australia, and, as growth platforms, it is
present in markets such as Japan, Ireland, Sweden and Poland, among
others. With a workforce of more than 37,000 and assets in excess
of €122.5 billion, in 2020, it achieved a turnover of €33 billion
and a net profit of over €3.6 billion. The company contributes to
sustain 400,000 jobs along its supply chain, with annual
procurement of €14 billion. A benchmark in the fight against
climate change, it has allocated more than €120 billion over the
last two decades to building a sustainable energy model, based on
sound environmental, social and governance (ESG) principles.
About Cummins Inc.
Cummins Inc., a global power leader, is a corporation of
complementary business segments that design, manufacture,
distribute and service a broad portfolio of power solutions. The
company’s products range from diesel, natural gas, electric and
hybrid powertrains and powertrain-related components including
filtration, aftertreatment, turbochargers, fuel systems, controls
systems, air handling systems, automated transmissions, electric
power generation systems, batteries, electrified power systems,
hydrogen generation and fuel cell products. Headquartered in
Columbus, Indiana (U.S.), since its founding in 1919, Cummins
employs approximately 57,800 people committed to powering a more
prosperous world through three global corporate responsibility
priorities critical to healthy communities: education, environment
and equality of opportunity. Cummins serves its customers online,
through a network of company-owned and independent distributor
locations, and through thousands of dealer locations worldwide and
earned about $1.8 billion on sales of $19.8 billion in 2020. Learn
more at cummins.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20210524005218/en/
Jon Mills Cummins Inc. Phone: 317-658-4540 Email:
jon.mills@cummins.com
Susana Sanjuan Iberdrola M: +34 677946805 Francisco Calderon M:
+34 654642160
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