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The
group is targeting markets in the United States, Chile and
Spain, the head of Global Power Generation Antonio Cammisecra
told Reuters. In the United States a focus will be on Texas,
where the group has wind and solar assets.
"We have huge renewable energy pipelines in these countries
where there’s also a promising market for hydrogen too,” he
said.
Enel, which owns Spanish utility Endesa will be installing
electrolysers – which use electricity to split water into
hydrogen and oxygen - at its solar and wind farms to produce
hydrogen to be used for energy storage or sold on to industrial
clients to help decarbonize their processes.
Cammisecra said the group wanted to build large-scale plants
that would typically have a quarter the capacity of the
renewable plant it is built next to.
"We'll start with 2-3 projects in the first year to see if the
business case is sound,” he said.
Enel is talking to companies interested in signing long-term
contracts to offtake the hydrogen to fuel their businesses, such
as chemicals, steel, cement and refining companies.
Though today expensive for widespread use, Brussels believes
hydrogen could replace fossil fuels in sectors that lack
alternatives to align operations with the EU’s Green Deal.
Earlier this month Germany earmarked 9 billion euros to expand
its hydrogen capacity in a bid to meet emission targets.
"If we realistically want to boost the contribution of
renewables to Europe's ambitions to cut CO2 emissions by 50-55%
by 2030, we'll need to find a role for hydrogen,” Cammisecra
said.
Enel, the world’s biggest private renewables player, is looking
to raise its green capacity to around 60 gigawatts by 2022 from
46 GW now.
It is planning to phase out Italy’s coal-fired generating
capacity by 2025 in line with the country’s law. "Despite all
the complications created by COVID, we’re most definitely on
track to be out of coal in Italy by 2025," Cammisecra said.
(Reporting by Stephen Jewkes, editing by Louise Heavens)
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