The Spanish government granted initial approval on Tuesday for gas grid operator Enagas to begin developing the Spanish section of a trans-European hydrogen pipeline and related infrastructure projects.
Enagas, in which the Spanish state holds a 5% stake, is transitioning from its traditional role as a natural gas grid operator to managing a hydrogen network, aligning with Spain's ambitions to become a European hub for green hydrogen.
Central to these plans is the H2MED hydrogen pipeline project, aimed at connecting the Iberian Peninsula to France and Central Europe by 2030. Enagas is collaborating with French, German, and Portuguese partners on the project, anticipating a net investment of approximately €3.2 billion ($3.5 billion) by 2030.
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On Tuesday, the Spanish government announced that Enagas could proceed with hydrogen projects deemed of European interest and integral to the H2MED corridor.
This includes an interconnection with Portugal, an underwater pipeline between Spain and France known as “BarMar,” and hydrogen storage facilities. The government's approval is provisional, with further unspecified steps required before work can commence.
Green hydrogen, produced using renewable energy, is viewed as essential for decarbonizing Europe's economy. However, due to its high cost, green hydrogen projects generally require subsidies to be competitive.
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