Spanish energy company Repsol is stalling a final investment decision (FID) on a renewable hydrogen project in northern Spain, the company told Argus, because it is waiting for more clarity from the government about possible changes in the fiscal framework.
The decision to "analyse carefully" FIDs of new projects in Spain comes as the country grapples with a change in government that could trigger an extension of the windfall tax charged against energy companies, Repsol chief executive Josu Jon Imaz said in a recent investors' conference call.
Repsol's 100MW renewable hydrogen plant in Bilbao is one of the projects put on hold as the company waits for certainty over the taxation framework, according to the head of Repsol's Petronor unit Emiliano Lopez.
"If there is no stability there is no investment and no strategy," Lopez said.
Repsol's renewable fuels and circular economy director Tomas Malango said in May the company would be aiming to reach FID on the Bilbao project this year.
But chief executive Imaz said while "Repsol plans large investments in our Spanish industrial complexes focused on reducing carbon footprint," moving forward with these depends on "stable and attractive" conditions to ensure the company gets returns on the projects.
"In case of not seeing a clear, stable and safe framework we are going to take different decisions in the close future," he said. Imaz said certainty is needed because the company is taking risks by adopting new technologies needed to decarbonise.
While Spain is Repsol's "main geography," the company has alternatives for investments including Portugal, Imaz said.
