Cummins to build world’s largest electrolyzer plant in Spain

Global power leader Cummins Inc., based in Columbus, Indiana, U.S.A., announced plans to build one of the world’s largest electrolyzer plants for the production of green hydrogen to be located in Castilla-La Mancha, Spain. The plant will enable Cummins to achieve carbon neutrality by 2050 as outlined in the company’s Planet 2050 sustainability strategy.

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. 

Iberdrola, a Spanish multinational electric utility company based in Bilbao, Spain, is one of the world’s biggest energy companies — third by market capitalization in the world — and a leader in renewables.

“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.”

“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,” said Ignacio Galán, chairman and CEO of Iberdrola.

A site selection search within the Guadalajara area of Castilla-La Mancha is currently underway for Cummins’ new EUR50-million (USD) PEM electrolyzer plant that will house system assembly and testing for approximately 500 megawatts (MW) per year and will be scalable to more than 1 gigawatt (GW) per 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.