MIBGAS Derivatives, the Iberian gas futures market operator, and DH2 Energy, a green hydrogen developer and producer[1], are launching the first auction for the purchase of renewable hydrogen on the Iberian market. The process begins tomorrow on Friday, 15 November with the publication of the documentation on the public MIBGAS website for those interested in participating in this open auction.
The auction is aimed at all companies interested in acquiring renewable hydrogen, both nationally and internationally, without restrictions on the type of application for the hydrogen. Different lots will be offered depending on the volume of supply and the duration of the contract, starting from a base price for each lot.
The first phase is the pre-qualification phase (starting tomorrow). The next phase will be the qualification stage, and subsequently, there will be another phase solely for the qualified companies to submit their bids. This final phase will be competitive. As a result, the companies that present the best offers and are selected, along with DH2 Energy, will negotiate the final agreements bilaterally, which may lead to the corresponding contracts.
Participants will be able to submit bids to purchase the renewable hydrogen generated by DH2’s Hysencia plant. The plant is in Aragón and construction is expected to begin in mid-2025, with operations anticipated to commence in the first half of 2027.
The Hysencia plant, with an electrolysis capacity of 35 MW, 49 MWp of photovoltaic power and 10 MW of grid connection is a pioneering initiative that was a winner in the first European auction, funded by the Innovation Fund under the umbrella of the EU Hydrogen Bank. Hysencia, which obtained integrated environmental approval this year, is one of the first commercial green hydrogen projects on the Iberian Peninsula. The renewable hydrogen produced by Hysencia will help decarbonise the industrial and mobility sectors.
The chairman of MIBGAS, Raúl Yunta, is hopeful that projects like these will stimulate an emerging market essential for the decarbonisation process and energy transition. “At MIBGAS we are convinced of the potential that green hydrogen has, and projects like Hysencia are crucial to start laying the foundations for a renewable hydrogen market. We are delighted to help drive decarbonisation by developing the green hydrogen market”.
For his part, the managing director of DH2 Energy, Marcos López-Brea Baquero, stated: “For the first time, the operator behind the Iberian market is launching an auction for renewable hydrogen, and it does so with the production from DH2 Energy’s Hysencia plant, which will serve as a benchmark in the sector. This auction marks a milestone for the development of renewable hydrogen, and we are confident that it will help stimulate demand and advance the establishment of a stable market for renewable hydrogen”.
About DH2 Energy
DH2 Energy is based in Madrid (Spain) and is dedicated to the development of large-scale renewable hydrogen plants through water electrolysis and the production of green hydrogen and its derivatives. DH2 Energy is one of the largest developers of renewable hydrogen in Spain, possessing one of the largest portfolios of projects under development. DH2 Energy operates in the Iberian Peninsula and is also present in other markets, including France, Mexico, and Uruguay.
About MIBGAS Derivatives
MIBGAS Derivatives is the organised market and exchange operated by MIBGAS S.A. for future products involving the transfer of ownership of gas delivered at the virtual balancing point (VBP), as well as LNG products at the plants and natural gas in underground storage.
MIBGAS is committed to developing the renewable gas market, particularly the market for renewable hydrogen. The market operator is authorised (BOE, 25 September 2024) to negotiate renewable gas ownership transfer products, guarantees of origin, and associated sustainability certifications on its platform.
[1] This hydrogen meets the requirements for renewable fuels of non-biological origin (RFNBO).
