Enagas Sells Stake in Tallgrass Energy to Fund Green Hydrogen Projects
Key Ideas
- Enagas is selling its stake in Tallgrass Energy to finance green hydrogen projects, with Blackstone paying $1.1 billion for the stake.
- The Spanish gas grid operator aims to transition to managing a network of hydrogen infrastructure in line with government plans for green hydrogen production.
- Enagas expects around 3.2 billion euros in net investment through 2030 to develop its hydrogen trunk network in Spain and the H2Med corridor project.
- The group anticipates that by the end of the decade, its regulated hydrogen assets will surpass those of natural gas in value.
Enagas, a Spanish gas grid operator, has agreed to sell its 30.2% stake in U.S. energy infrastructure company Tallgrass Energy to finance green hydrogen projects. The stake will be bought by U.S. investment firm Blackstone for $1.1 billion. Enagas plans to shift from its traditional role to managing a network of hydrogen infrastructure, aligning with the government's green hydrogen production goals. The company expects a capital gain of 360 million euros from this transaction, aiming for a net investment of 3.2 billion euros by 2030 for hydrogen infrastructure development. To fund this, Enagas has reduced its dividend plans for the next three years. It anticipates its hydrogen assets will exceed the value of natural gas assets by the end of the decade.