Spain said on Tuesday it had signed a deal with Envision Group (1783.HK) for the Chinese group to build a $1 billion plant to manufacture machinery used for the production of green hydrogen.
A memorandum of understanding showed Envision would start building the factory that will produce electrolysers - the machinery separating hydrogen from water - by June 2026.
The Chinese company will finance the project with private partners at a yet-to-be announced location in Spain, it said.
Envision is also set to invest in green hydrogen production, the whole green hydrogen value-chain and helping to develop other related industries such as fertilisers and biochemicals.
The company is currently negotiating further renewable energy deals, specifically in e-methanol, green hydrogen and green infrastructure, with potential Spanish and European partners, the memorandum said.
Green hydrogen is produced using renewable electricity and Spain is positioning itself as a leader in the field in Europe, taking advantage of its abundant wind and solar power potential.
While it is seen as key to decarbonising Europe's economy in the future, green hydrogen projects in general are not competitive without subsidies due to their high costs.
The document signed on Tuesday did not say whether the planned electrolyser plant was part of the 2022 project.
($1 = 0.9066 euros)
