QATAR – Qatar Investment Authority (QIA), the country’s sovereign wealth fund is considering raising its stake in Spain’s leading utility company, Iberdrola.
Currently holding 8.8%, QIA reportedly aims to surpass a 10% share in the multinational electricity provider.
According to London Stock Exchange Group (LSEG) data, Qatar’s 8.8% stake makes it Iberdrola’s largest shareholder, ahead of BlackRock (5.395%) and Norges Bank (3.115%).
Discussions with the Spanish government about increasing Qatar’s stake have already occurred. The fund first invested in Iberdrola in 2011, acquiring a 6.16% share, and at one point held 9.7% in 2017.
An increase in Qatar’s shareholding is not expected to impact Iberdrola’s overall management but may affect its board composition.
However, the Spanish government retains the right to block or impose conditions on large foreign share acquisitions in strategic companies.
In related news, Iberdrola and British energy company BP have announced plans to build a 25-megawatt green hydrogen plant in Castellon, on Spain’s eastern coast.
The project will receive €15 million (US$16.70m) in subsidies from the European Union, with both companies sharing the costs. The plant is part of BP’s efforts to reduce the carbon footprint of its Castellon oil refinery.
Green hydrogen is produced by separating hydrogen from water through electrolysis using renewable energy, such as wind and solar power.
This process supports Europe’s strategy to reduce carbon emissions and improve energy security. The plant’s 25 MW electrolyzer will be powered by renewable electricity via a power purchase agreement (PPA) with Iberdrola, which will supply 200GWh per year from its photovoltaic and wind projects.
The electrolyzer will use containerized proton exchange membrane (PEM) technology supplied by Plug Power, a leader in green hydrogen solutions.
It is expected to produce around 2,800 tonnes of green hydrogen annually, replacing part of the grey hydrogen—currently produced from natural gas—used by BP’s refinery.
This shift is anticipated to reduce CO2 emissions by 23,000 tonnes annually, equivalent to taking 5,000 cars off the road. During construction, the project could also create up to 500 direct jobs.
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