Spanish renewables giant Iberdrola and Mitsubishi Power, a unit of Japanese industrial conglomerate Mitsubishi Heavy Industries, have formed an alliance to decarbonise industry through the joint development of green hydrogen plants, battery storage system and electrified heat production facilities around the world.

As a first step of a cooperation agreement signed by Ken Kawai, chief executive of Mitsubishi Power, and Aitor Moso, Iberdrola's director of liberalised business, the two companies will create teams to identify opportunities for large-scale renewables generation and storage projects for industry.

While no concrete projects were named , Moso stressed that tying-up with Mitsubishi Power is part of a strategy of developing alliances with key players in the hard-to-decarbonise industrial sector.

“With the expansion of renewable solutions such as the electrification of heat, battery storage and green hydrogen in industrial manufacturing processes, we are putting our capabilities at the service of an urgent and common goal: to build a more sustainable and emissions-free economic model, offering development opportunities for industry and employment,” Moso said.

Iberdrola recently has earmarked to spend €150bn ($182.79bn) this decade in order to nearly triple its renewable generation capacity to 95GW, up from 35GW in 2020.

Mitsubishi Power next to producing conventional technology such as gas and steam turbines, also provides electrolysis units, battery storage systems and high temperature heat pumps to steam and solar photovoltaic power generation processes.

The two companies in the past have worked together on gas turbine combined cycle (GTCC) power projects.

“With using this collaborating experience in GTCC projects, we will jointly develop and deploy the necessary hydrogen infrastructure, battery energy storage systems, and electrified heat production systems to decarbonise the power and industrial sectors,” said Kawai.