Enagas to Build Extensive Hydrogen Network in Spain
Key Ideas
- Enagas plans to construct a 2,600 km hydrogen network in Spain, with an investment of EUR 2.6 billion.
- The company aims to make a final investment decision by 2027, start construction in the following year, and commence operations by 2030.
- Enagas is a strong advocate for green hydrogen production despite challenges like high costs, subsidies, and market demand.
- The infrastructure development aligns with Spain's green agenda, including the adaptation of gas assets to declining gas demand and exploration of ammonia and CO2 capture.
Enagas, the Spanish gas grid operator, has announced its ambitious plan to build a 2,600 km hydrogen network in Spain, with a significant investment of EUR 2.6 billion. The company intends to finalize its investment decision by 2027, kick off construction in the following year, and have the network operational by 2030. Enagas is a staunch proponent of the green hydrogen sector, which utilizes renewable energy in its production processes. However, the industry faces challenges such as high production costs, reliance on subsidies, and a lack of sufficient buyers. In response to the declining gas demand in Spain, Enagas will not only construct new pipelines but also repurpose existing gas assets. Additionally, the company is exploring technologies related to ammonia production and carbon capture. These strategic initiatives are in line with Spain's environmental objectives and emphasize sustainability and technological advancements in the energy sector.