Spanish Avalon to invest €8 billion in hydrogen and derivatives projects

Spanish energy company Avalon Renovables plans to invest around €8 billion in the development of green hydrogen and derivatives projects in different locations distributed between the provinces of Jaén, Huelva, Cádiz and Málaga.

Specifically, the investment is expected to cover the construction of renewable generation plants, green hydrogen and derivatives for the production of green ammonia, e-methanol, e-SAF and biogas plants, as well as the infrastructure necessary for the transport, storage and distribution of the final product to the projected delivery points.

According to Avalon, it is likely to be disbursed progressively over a period of five years and foresees the creation of 10,000 direct jobs, considering all phases of project development, including planning, engineering, construction and operation.

The company plans to begin the first phases of e-methanol and e-SAF production in mid-2028.

Avalon Renovables is said to currently have a project portfolio of more than 3.5 GW in Spain. This includes the Algeciras and Cadiz Bays project, which is considered to be strategically relevant for Andalusia. This undertaking involves the construction of a dedicated point-to-point hydroduct that will supply the Bay of Algeciras with green hydrogen for the production of 750,000 tons of green ammonia per year, nearly 350,000 tons of e-methanol and 130,000 tons of e-SAF.

Huelva is, reportedly, also one of its strategic locations, where the development and construction of a plant for the production of 350,000 tons of e-methanol per year is planned in the vicinity of the Bay of Huelva.

Another of the company’s projects is the Martos biofuel plant in Jaén, which involves an investment of more than €100 million that is expected to generate more than 200 jobs in the construction phase, scheduled for the end of 2025, and more than 40 highly qualified jobs in the operations phase, which is scheduled for the end of 2027.

As for the activities in Malaga, the company is developing a project with the capacity to produce 30,000 tons of e-SAF per year.

To note, Avalon announced its investment plans during the second edition of the Green Hydrogen Congress, held in Huelva. At the time, it also presented the roadmap of its projects and shared its vision of the sector with other companies.