Enagas gets first nod to develop Spanish section of H2MED hydrogen pipeline
The Spanish government gave a first go-ahead on Tuesday to gas grid operator Enagas to start developing the Spanish section of a planned trans-European hydrogen (H2) pipeline and related H2 infrastructure projects.
Enagas—in which the Spanish state owns a 5% stake—is moving to transition from its traditional role as a natural gas grid operator to managing a network of H2 infrastructure, taking advantage of the Spanish government's plans to become a European hub for green H2.
Key to the government's and the company's plans is the flagship H2MED H2 pipeline project, which would connect the Iberian peninsula to France and on to Central Europe by 2030.
Enagas is teaming up with French, German and Portuguese peers to develop the project. It expects net investment of around €3.2 B ($3.5 B) through 2030 to develop its H2 projects, including the H2MED corridor.
On Tuesday, the Spanish government said Enagas could move forward with H2 projects deemed of European interest and part of the H2MED corridor, including an interconnection with Portugal, an underwater pipeline between Spain and France known as "BarMar", and H2 storage facilities.
The government said its approval is provisional at this stage but did not specify what further steps might need to happen before work starts.
Green H2, produced using renewable energy, is seen as a key to decarbonize Europe's economy. However, given its cost, green H2 projects in general are currently not competitive without subsidies.
($1 = €0.9250)
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