Utility giant Iberdrola forged two new alliances to advance its green hydrogen ambitions in Spain and beyond, in moves the electrolyser sector said would help drive down costs of the key energy transition fuel.

Iberdrola signed a memorandum of understanding (MoU) with hydrogen specialists Nel Hydrogen Electrolyser, a division of Norway’s Nel, to collaborate in the development green hydrogen production of more than 200MW in Spain by 2023.

The agreement is designed to create large-scale deployment that will reduce the production costs of green hydrogen to make it competitive with grey hydrogen produced from fossil fuels.