Spain Electrolyzer Market Overview, 2030

Spain’s electrolyzer market is accelerating swiftly, energized by its ambition to lead Europe in green hydrogen production. The latest revision of its National Energy and Climate Plan has raised the target for electrolyzer capacity to 12 gigawatts by 2030, up from an earlier goal of 4 GW. State support is substantial nearly €800 million in subsidies has been allocated to seven key green hydrogen projects collectively enabling over 650 megawatts of new electrolysis capacity, spread across industrial ""hydrogen valleys"" in Andalusia, Asturias, Castilla-La Mancha, the Basque Country, and Murcia. In parallel, a new €400 million state aid scheme has been approved to underpin renewable hydrogen auctions, set to fund up to 345 MW of added electrolyzer capacity. Technological innovation is also burgeoning Nordex Electrolyzers has unveiled a 500-kilowatt pressurized alkaline prototype designed for fluctuating renewable input, achieving efficiency metrics below 50 kilowatt-hours per kilogram of hydrogen, enhancing flexibility and grid integration. Manufacturing capacity is scaling too Hygreen Energy is deploying a new factory in Andalusia capable of producing up to 5 GW of electrolyzer modules, backed by strategic collaboration with local energy players. System design improvements such as high-pressure operation, modular architectures, and grid-responsive control are being implemented to enhance efficiency, reduce compression needs, and align production with renewable peaks. Regulatory frameworks are also emerging hydrogen is increasingly being integrated into permitting and energy frameworks, with growing emphasis on safety protocols and grid interface standards.

According to the research report, ""Spain Electrolyzer Market Overview, 2030,"" published by Bonafide Research, the Spain Electrolyzer market is anticipated to add to more than USD 340 Million by 2025–30. Spain’s electrolyzer market is propelled by its vast renewable energy infrastructure, climate policies, and industrial demand, especially within sectors like refining, fertilizers, and mobility. Key drivers include the country’s abundance of solar and wind resources ideal for powering electrolysis and a strong push to decarbonize heavy industry. Significant progress is evident through landmark projects major investments backed by IPCEI Hy2Use have enabled hydrogen valleys with integrated electrolysis hubs. Industrial titans like Cepsa are constructing a 300 MW electrolyzer plant within the Andalusian Green Hydrogen Valley with an estimated investment of around €3 billion, while the large-scale Cartagena electrolyzer project, powered by solar and wind, is set to produce 14,500 tonnes of green hydrogen annually, replacing a portion of the refinery’s current grey hydrogen supply. In Puertollano, Iberdrola’s operational plant now produces renewable hydrogen at scale supporting fertilizers production and reducing emissions. Despite this progress, cost pressures remain significant, driven by high capital expenses, infrastructure gaps, and an uncertain regulatory environment. Nonetheless, new value streams are emerging hydrogen blending into existing gas networks, use in industrial processes, and future export corridors such as the BarMar pipeline linking Spain to France demonstrate growing flexibility and market depth. Geographically, the market spans diverse industrial nodes from Andalusia to Murcia and the Basque Country each offering renewable integration and port access. Investment in manufacturing, evidenced by Hygreen Energy’s Andalusian production facility, is enhancing local supply chains. Research horizons are also expanding through demonstrators and pilot programs nationwide.

In the Spain electrolyzer market, Alkaline Electrolyzers are widely used due to their maturity and cost-effectiveness for large-scale hydrogen production. These electrolyzers operate by using an alkaline electrolyte, such as potassium hydroxide (KOH), which facilitates the electrolysis process to produce hydrogen and oxygen. Alkaline electrolyzers are well-suited for large-scale hydrogen production, making them ideal for industrial applications like ammonia production and refining, which are prominent in Spain. However, their slower response to fluctuating renewable energy inputs limits their ability to integrate efficiently with variable renewable sources like wind and solar. Despite this, they remain a staple for conventional hydrogen production due to their robust performance and reliability. On the other hand, Proton Exchange Membrane (PEM) electrolyzers are emerging as a more flexible option for Spain, especially as the country increases its reliance on renewable energy. PEM electrolyzers operate by using a solid polymer membrane to transport protons, allowing for high-purity hydrogen production. Their ability to rapidly respond to fluctuating renewable energy makes them ideal for decentralized energy storage, hydrogen fueling stations, and small-scale industrial applications. The main drawback of PEM technology in Spain is the high cost of platinum catalysts used in the process and their relatively short operational lifespan compared to alkaline electrolyzers. Another key technology in Spain is Solid Oxide Electrolyzers (SOECs), which operate at high temperatures to achieve higher energy efficiency. These electrolyzers are particularly well-suited for coupling with waste heat from industrial processes, making them a promising solution for decarbonizing heavy industries. However, challenges related to material stress and the need for further development for widespread commercial deployment remain. Anion Exchange Membrane (AEM) electrolyzers, still in early stages of commercialization, hold potential due to their ability to use cheaper catalysts and more flexible operating conditions.

In Spain, the Power-to-Gas (PtG) application is particularly significant, enabling the country to convert excess renewable electricity into hydrogen. This process uses electrolyzers to split water into hydrogen and oxygen, allowing for the injection of hydrogen into the natural gas grid or its storage for later use. This technology helps to mitigate the intermittency of renewable energy sources like wind and solar, making it a crucial part of Spain’s strategy for renewable energy integration and grid balancing. The Energy Storage and Fueling for Fuel Cell Electric Vehicles (FCEVs) market is also growing rapidly in Spain. With an increasing number of hydrogen-powered vehicles on the road, electrolyzers play a pivotal role in supplying hydrogen for fueling stations. Spain’s FCEV market is supported by both government initiatives and significant investments in hydrogen infrastructure, positioning the country as a leader in Europe’s transition to clean transportation. Furthermore, the Industrial Gases segment is one of the key applications for electrolyzers, providing high-purity hydrogen needed for industries like refining, electronics, and chemicals. Spain is a significant player in the global industrial gases market, and electrolyzers are critical in meeting the rising demand for hydrogen in these sectors. Steel Plants in Spain are increasingly turning to hydrogen, particularly through the Direct Reduced Iron (DRI) process, to reduce carbon emissions and help decarbonize the steel industry. Spain is committed to reducing its industrial carbon footprint, and the use of hydrogen in steel manufacturing is central to this goal. The Electronics and Photovoltaics industries also rely on ultra-pure hydrogen for the production of semiconductors and solar panels, where purity is critical for achieving the desired material properties. In addition, the Others category represents emerging hydrogen applications, such as its use in ammonia and methanol production, and even in the aviation sector for green aviation fuels.

Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Electrolyzer Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Technology
• Alkaline Electrolyzer
• Proton Exchange Membrane (PEM)
• Solid Oxide Electrolyzer (SOE)
• Anion Exchange Membrane (AEM)

By Application
• Power Plants
• Energy Storage or Fueling for FCEV's
• Industrial Gases
• Power to Gas
• Steel Plant
• Electronics & Photovoltaics
• Others Show more