Public-private collaboration to develop a broad green hydrogen ecosystem and roadmap in Mallorca
About this good practice
The green hydrogen ecosystem that is developed in Mallorca epitomizes a groundbreaking collaboration between the public and private sector, addressing the island's pressing energy challenges and contributing to its transformation into a more sustainable, competitive and smarter region.
Core industry partners lead the industrial project resulting in the construction of an electrolysis plant powered by two photovoltaic plants. It envisages testing of public and private applications including the supply of fuel for public buses and auxiliary power to private ferries, and the injection of part of h2 into the island’s gas network. This holistic approach with its wide range testing requires a broad public-private partnership (PPP) in which companies from Spain and other EU countries, such as Acciona, Enagás, Redexis, Cemex and Balearia are joined by public entities such as IDEA, the government of the Balearic Islands (through the Balearic Energy Institute, IBE), Palma city and Balearic Ports. This collaboration has mobilised 50 million € of public and private investments and combines the strength of both sectors, including private technology expertise and public regulatory support, ensuring shared risks and rewards and financial viability.
The PPP also lays the foundation for the development of a long-term vision for h2 in the island: a roadmap that will highlight the most efficient applications for h2, fostering inclusive development and engaging all stakeholders, including SMEs.
Resources needed
- 50 million € of public and private investments mobilised.
- 9 999 999,50 € of EU contribution through the Fuel Cells and Hydrogen Joint Undertaking (FCH JU).
- A Special Purpose Vehicle company has been created to manage the H2 plant: Power to Green Hydrogen Mallorca.
Evidence of success
- 50 million euros of public and private investments mobilised.
- Project declared as Strategic by the Balearic Regional Government.
- Initiative selected as one of the 3 European h2 valley projects of 2023 (Clean H2 Partnership Awards).
- Electrolysis plant built will produce 300 tons of green h2/ year.
- 32 entities involved, including private companies from Spain and other EU countries and public entities mainly national/regional but also from other territories to ensure replicability.
Potential for learning or transfer
The scalability and replicability of this strategic PPP to other European regions will be showcased. By including partners from across the EU, the collaboration already anticipates the development of replication experiences in other EU islands: Madeira (PT), Tenerife (ES), Aran (IE), Greek Islands and Ameland (NL) as well as Chile and Morocco.
Through the roadmap towards 2050, together with full replication studies, the impact beyond the technology demonstrations delivered by the PPP will be expanded, setting the basis for the first h2 hub in Southern Europe. This initiative will provide Europe with a blueprint for decarbonization of island economies, and an operational example of how PPP are essential contributors to the energy transition and the 2050 net zero targets.
Further information
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