MADRID (Reuters) - Spanish energy company Repsol cut its 2030 target for green hydrogen production by up to 63%, Chief Executive Josu Jon Imaz said on Thursday, highlighting the challenges of a high-cost industry heavily reliant on subsidies.

Repsol now expects to achieve between 0.7 gigawatts (GW) and 1.2 GW of electrolyser capacity by the end of the decade, down from a previous 1.9 GW target, Imaz told analysts as he presented results for the year.

This is due to delays in the development of the market and the regulatory framework, among other reasons, he said.

"We are prioritising return and prudence in the capital allocation over any capacity target," he said.

Green hydrogen is produced using renewable energy and is seen as key to decarbonise Europe's economy in the future. However, given its cost, green hydrogen projects in general are not competitive without subsidies.