International law firm Simmons & Simmons has provided legal counsel to a joint venture on the first financing of a hydrogen plant in the Iberian region.
The groundbreaking renewable energy project is led by Basque Hydrogen - a joint venture between Petronor (a subsidiary of the Repsol Group), which holds a 51% stake; Enagás Renovables, which holds a 24.5% stake, and Ente Vasco de la Energía, which holds a 24.5% stake.
The agreement will see the establishment of an electrolytic hydrogen plant in Bilbao, which will produce synthetic fuels (e-fuels) - carbon-neutral fuels generated through electrolysis using renewable energy. The financing was formalised under a 'project finance' mechanism - a financial structure typically used to fund large-scale projects.
The experienced Simmons team advising the joint venture on the financing arrangement was led by partner and energy and infrastructure specialist, Alvaro Barro, supported by Daniel Vázquez (Of Counsel), Luis Carretero (Supervising Associate), and Pablo Garcia-Foncillas (Associate).
Commenting on the agreement, Alvaro Barro said: "This major renewables project will be crucial for the region, promising to deliver cleaner fuels at scale. It has been rewarding to guide the institutions forming Basque Hydrogen through the complexities of the project's financing agreement. Our team's deep expertise in the energy sector was central to securing the arrangement for the joint venture group."
