Enagás Unveils Ambitious €4 Billion Investment Plan for Renewable Hydrogen Infrastructure
Key Ideas
  • Enagás, Spain's gas infrastructure leader, plans a €4.035 billion investment by 2030, prioritizing renewable hydrogen infrastructure for a significant EBITDA growth.
  • The creation of Scale Green Energy, a subsidiary, focuses on decarbonization projects like CO2 management, hydrogen refueling stations, and green ammonia production.
  • While emphasizing green hydrogen, Enagás recognizes the ongoing importance of natural gas infrastructure for energy security during renewable energy variability.
  • Enagás is committed to sustainability with a 22.5% CO2 emissions reduction in 2024, aiming for net-zero emissions by 2040, and inclusion in prominent ESG indices.
Enagás, Spain's primary gas infrastructure operator, has revealed an ambitious investment plan totaling €4.035 billion until 2030, with a significant emphasis on advancing renewable hydrogen infrastructure. This strategic move follows the company's strong financial performance in 2024, surpassing profit targets and improving its financial position. The investment push is fueled by the sale of its Tallgrass Energy stake and the resolution of the Gasoducto Sur Peruano arbitration, which reduced net debt and provided clarity on dividend repatriation. Additionally, credit rating upgrades from S&P and Fitch to BBB+ have bolstered Enagás' confidence in initiating this substantial investment phase. Central to Enagás' strategy is the development of a robust renewable hydrogen infrastructure, with a sizable portion of the investment earmarked specifically for hydrogen projects. Enagás anticipates a 9.5% compound annual EBITDA growth between 2026 and 2030, driven by these hydrogen initiatives. By 2030, the company foresees its hydrogen assets outpacing its natural gas assets, signifying a significant shift in its portfolio. Enagás has introduced Scale Green Energy, a dedicated subsidiary focused on fostering decarbonization projects across various sectors. This subsidiary will spearhead endeavors like CO2 management, LNG and BioLNG bunkering, renewable hydrogen for mobility, and green ammonia production. Projects such as CO2necta and MOSUSOL NetCO2 aim to capture and transport CO2 emissions, contributing to emissions reduction from Spanish cement plants. Moreover, Scale Green Energy will play a pivotal role in establishing hydrogen refueling stations for vehicles, thereby promoting sustainable transportation growth. Despite the strong push for green hydrogen, Enagás acknowledges the importance of maintaining natural gas infrastructure. The company recognizes the rising demand for energy gases and peak electricity due to renewable energy fluctuations, nuclear power phase-outs, and expanding data center consumption. Enagás highlights the critical role of its gas infrastructure in ensuring energy security and stability, particularly in periods of low renewable energy generation. Enagás' sustainability commitment extends beyond investments, with a notable 22.5% reduction in CO2 emissions in 2024 and a clear trajectory towards achieving net-zero emissions by 2040. The company's inclusion in prestigious ESG indices like the Dow Jones Best in Class Index and FTSE4Good underscores its dedication to environmental, social, and governance principles. To drive its strategic objectives, Enagás is embarking on a Digital Transformation Plan to enhance operational efficiency and innovation. By leveraging digitalization, cybersecurity measures, and artificial intelligence, Enagás aims to create a more agile and resilient energy model that aligns with its sustainability aspirations.
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