Promoting green hydrogen to "shield" energy prices in the Islands
The Government is studying how to exploit this energy to provide security to companies.
PalmGreen hydrogen is a type of hydrogen produced sustainably through the electrolysis of water using electricity from renewable sources, such as solar or wind. By promoting this energy, the Government hopes to "shield" energy prices from fluctuations arising from geopolitical conflicts. This way, as the Director General of Circular Economy, Energy Transition and Climate Change, Diego Viu, explained this Wednesday, it would give companies on the islands a "competitive advantage."
In a press conference, Viu explained that the Balearic Islands have the "potential" to produce, distribute, and use this energy, which would contribute to the decarbonization of energy-intensive industries. The Government is studying its options in this regard, as promoting green hydrogen would provide "energy security" in the region, he noted. "It shields us from price fluctuations due to geostrategy," he insisted.
In this regard, he explained that in 2021 and 2022, due to the COVID-19 crisis and the outbreak of the war in Ukraine, numerous companies suffered an increase of between 400% and 500% in the additional costs they paid for energy. Meanwhile, if the use of green hydrogen were expanded, an energy price of between 50% and 80% per megawatt hour (MWh) could be set. This would provide "insurance" for companies compared to the range of between 90 and 110 euros per MWh seen in the last four years.
"It's a very ambitious goal. It's a technology that has already moved beyond its experimental phase, and applications are being sought for it," the general director explained. "It's constantly changing, in a dynamic of growth and updating that has yet to be consolidated on a massive scale, but it's on its way." The Balearic Energy Institute (IBE) is developing a roadmap for deploying this energy by 2050. It should be applied to both land and sea transport (it's already being used in some buses of the Palma Municipal Transport Company). It should also be used to replace the use of fossil fuels, for example, to heat buildings. Above all, he pointed out, in cases where electricity is not capable of providing sufficient power. In parallel, hydrogen can also be stored and mixed with gas.