Enagas to Dramatically Reduce Debt and Invest Billions in Hydrogen Projects
Key Ideas
- Enagas is set to reduce its net debt to its lowest level since 2008 by investing in hydrogen projects, expecting to maintain this until 2026.
- The company will be focusing on hydrogen infrastructure network management, with planned gross investments of nearly €6 billion, including the H2Med trans-European corridor.
- To finance the hydrogen projects, Enagas has already cut its dividend and is seeking interest in the H2Med corridor by launching a call for expressions of interest.
- Enagas aligns its strategy with Spain's ambition to become a European leader in green hydrogen, exceeding revised targets despite posting a loss in the first nine months of the year.
Spanish gas network operator Enagas is making significant strides in reducing its debt levels and transitioning towards hydrogen projects. Following the sale of its stake in a U.S. energy infrastructure company, Enagas has cut its debt by about €1 billion, expecting to maintain a level around €2.4 billion until 2026. The company is shifting focus from traditional gas business to managing a hydrogen infrastructure network requiring gross investments of nearly €6 billion. This includes plans for a hydrogen network in Spain and the H2Med corridor connecting the Iberian Peninsula with northwest Europe. Enagas plans to make net investments of around €3.2 billion by 2030, partly financed by cutting dividends. Seeking interest in the H2Med corridor, Enagas aims to present a new strategic plan alongside next year's first-quarter results. This strategic direction aligns with Spain's goal to lead in green hydrogen in Europe. Despite a loss in the first nine months of the year, Enagas is optimistic about exceeding revised targets and maintaining its debt reduction and hydrogen investment plans.