BBVA signs the first project finance loan for a renewable hydrogen plant on the Iberian Peninsula
BBVA CIB and the company Basque Hydrogen have signed the first project finance loan on the Iberian Peninsula to finance an electrolytic hydrogen plant to produce synthetic fuels (e-fuels) in the Bilbao port. BBVA made the announcement during the largest European conference on innovation and financing for the energy transition, the Energy Tech Summit, which starts on Wednesday in Bilbao. The event will bring together over 1,500 experts from the cleantech ecosystem.
“This project shows what can be accomplished through robust partnerships among companies that are committed to the energy transition and sustainability,” said the Global Head of Sustainability and Corporate and Investment Banking at BBVA, Javier Rodríguez Soler. “Together with Basque Hydrogen, we are breaking new ground in renewable energy innovation and industrial transformation, reinforcing the commitment we both have to contribute to a more sustainable future.”
Before the summer, the equipment will begin to arrive in Bilbao and be assembled, which will require about six months of work. Its launch is expected to take place in the first half of 2026, once the electrical line to supply the plant is completed. The plant is designed to supply hydrogen to a demo plant for synthetic fuels suitable for cars, trucks, boats and aviation.
Basque Hydrogen is spearheading the project, a joint venture created by Petronor (51 percent), Enagás Renovables (24.5 percent) and Ente Vasco de la Energía (24.5 percent) to build and operate the electrolyzer. BBVA was the advisor and debt coordinator, working closely with Basque Hydrogen to ensure the financial viability of the endeavor, combining experience and innovation to face the ambitious challenges new technologies pose for decarbonization. The financing was arranged under a project finance (non-recourse financing) mechanism, a pioneering approach in the emerging sector of hydrogen and its derivatives.
BBVA made this announcement during the Energy Tech Summit, which kicked off today in Bilbao. The financial institution is the main sponsor of a new edition of the largest European conference on innovation and financing for the energy transition, taking place April 9th and 10th at the Euskalduna Conference Center. This year, the meeting will focus on discussions of the key resources needed to attain a more sustainable energy model. The event will bring together over 1,500 experts from the cleantech community.
Sustainability, a strategic pillar for BBVA
For BBVA, sustainability represents an enormous business opportunity, leading the bank to make it one of its strategic priorities to overcome three major challenges: the fight against climate change, preservation of natural capital and promotion of inclusive growth.
The main goal of this strategy is to foster new business through sustainability. BBVA set a new target to channel €700 billion between 2025 and 2029. This figure more than doubles the previous target of €300 billion for the 2018-2025 period, reached one year ahead of schedule. This new, more ambitious target also encompasses a shorter period of time (five years instead of eight).
BBVA is present as an investor is some of the most cutting-edge, innovative climate action funds. The aim is to obtain financial returns, participate in disruptive projects and build knowledge on these technologies to better advise companies impacted by them, and in need of financing.
To date, BBVA has invested €108 million in decarbonization funds, and created a strategic partnership with KKR, investing $200 million in its global climate strategy.