Spain Greenlights Hydrogen Pipeline to Lead European Green Transition
Key Ideas
  • Spanish government approves Enagas to develop hydrogen infrastructure projects, transitioning from natural gas to hydrogen.
  • Enagas plans H2MED hydrogen pipeline connecting Spain to France and Central Europe by 2030, expecting 3.2 billion euros investment.
  • Collaboration with French, German, and Portuguese peers on hydrogen projects, including interconnections and storage facilities.
  • Green hydrogen vital for decarbonising Europe's economy, but currently requires subsidies due to cost.
The Spanish government has given the green light to Enagas, a gas grid operator, to begin developing the Spanish section of a trans-European hydrogen pipeline and related hydrogen infrastructure projects. Enagas, with a 5% state ownership, aims to shift from natural gas operations to managing a hydrogen network, capitalizing on Spain's aspiration to become a European green hydrogen hub. A focal point in this endeavor is the H2MED hydrogen pipeline project, set to link the Iberian peninsula to France and onward to Central Europe by 2030. Enagas is partnering with companies from France, Germany, and Portugal and expects to invest approximately 3.2 billion euros by 2030 for its hydrogen initiatives, including the H2MED corridor. The government's approval allows Enagas to proceed with various hydrogen projects related to the H2MED corridor, such as interconnections with Portugal, an underwater pipeline to France, and hydrogen storage facilities. While the approval is provisional, it signifies a significant step towards a green transition. Green hydrogen, produced from renewable sources, is crucial for Europe's decarbonization efforts. However, due to its current high cost, green hydrogen projects rely on subsidies to remain competitive in the market.
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