Spanish oil refiner Cepsa may follow larger rival Repsol and curb green hydrogen investments at home as the government looks at taxation changes.

“Cepsa is evaluating the fiscal impact of possible approval of a new permanent tax in Spain,” the company said by email. If the tax is approved, Cepsa will “slow the green hydrogen investments it had planned in Spain and prioritize its international expansion.”

It would be yet another blow for the fuel seen as vital to help curb emissions. Repsol said earlier this week it’s shelving spending in Spain for now, while Finland’s Neste Oyj is putting a project in Finland on hold as national legislation doesn’t fully support building a large-scale facility. 

Outside Spain, Cepsa already has green hydrogen projects in the US, Brazil, Morocco and Algeria. 

BP Plc also operates an oil refinery in Spain, where it is planning to build a green hydrogen electrolyzer. BP didn’t respond to requests for comment on the Castellon project.

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