Malaga To Be At Forefront Of Clean Energy For Aviation – Jobs & Economic Boom Around The Corner

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Plane refuelling pinch Sustainable Aviation Fuel. Credit: Bulent camci - Shutterstock

Two greenish hydrogen plants successful Malaga, Spain, will commencement producing sustainable aviation substance (SAF) successful 2029, a immense measurement towards cleaning up aerial travel. 

Repsol leads nan €1.5 cardinal project, backed by EU funding, to present 200,000 tonnes of SAF yearly and trim aviation emissions by up to 90 per cent. Located successful Axarquía, adjacent Malaga’s airport, nan accommodation autumn successful statement pinch Spain’s hydrogen strategy and committedness economical maturation and occupation creation.

Project specifications and timeline

Repsol, together pinch partners for illustration Enagas, plans to build 2 100 MW electrolysis plants successful Malaga’s Axarquia region. Construction starts successful 2026, pinch operations planned for 2029. The €1.5 cardinal investment, which includes €300 cardinal from nan EU Innovation Fund, supports Spain’s extremity of 4 GW electrolysis capacity by 2030, arsenic outlined successful the PERTE plan.

What is SAF and really is it produced?

The plants will usage electrolysis powered by renewable energy, chiefly solar, to nutrient green hydrogen. The hydrogen is mixed pinch captured CO₂ to create a benignant of synthetic kerosene, a near-zero-emission fuel. The process achieves 85 per cent lifecycle greenhouse state savings, according to IATA standards. Malaga’s 2,500 yearly sunshine hours are hoped to trim powerfulness costs by 50 per cent, making nan location ideal.

Environmental and economical benefits

Green hydrogen SAF could reduce aviation’s c footprint by 80 to 90 per cent, supporting nan EU’s 6 per cent SAF operation demanded for 2030. Locally, it is said that nan task will create 1,500 building jobs and 300 imperishable roles, expanding Malaga’s GDP by €200 cardinal annually, according to an Andalusian effect study. This revitalises nan region eastbound of Malaga, deed by cultivation diminution owed to a bid of terrible droughts.

Challenges successful scaling production

However, precocious costs and proviso concatenation bottlenecks airs risks. Electrolysis instrumentality costs €1,200 per kW, pinch 20 per cent of components facing shortages. Grid upgrades are needed to grip renewable power fluctuations and abrupt changes successful powerfulness flow, which are said to person been down nan great powerfulness outage successful Spain successful April 2025. Yet, EU policies, for illustration nan €40 cardinal Hydrogen Bank, offset 40 per cent of costs, which will trim backstage finance burdens.

Global discourse and hose impact

Malaga’s task follows different world precedents for illustration California’s H2@Scale, pinch 15 SAF plants worldwide by 2024, per nan IEA. Lower SAF prices, perchance €1.5 per litre by 2030, could thrust hose take and meet rising request projected astatine 17 cardinal litres. Being adjacent to Malaga’s airdrome and ports strengthens nan export imaginable to EU aviation centres.

For nan Malaga Province’s economy, perchance this task could springiness nan sustainable move distant from dependence connected tourism and spot finance by capitalising connected its earthy resources pinch a comparatively debased biology effect – provided, of course, location is capable housing fresh to return connected nan basal influx of skilled workers.

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