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Spain’S 1,615-Mile Hydrogen Network Advances Ahead Of Schedule, Enagas Says

oil-gas
Apr 28, 2025
Article Source LogoPipeline Gas Journal
Pipeline Gas Journal

(Reuters) — Plans to build a 2,600 km (1,615 mile) hydrogen network in Spain are advancing ahead of schedule and the infrastructure is on track to start operations in 2030, the chief of Spanish gas grid operator Enagas said on Friday.

The network will be part of the planned trans-European H2Med corridor aimed at connecting the Iberian region with northwest Europe.

The company plans to take a final investment decision in 2027 and start construction the following year, CEO Arturo Gonzalo said at an event to launch a public consultation process related to the project.

The Spanish network will include new pipelines as well as some repurposed gas assets, he said, for an overall investment of some 2.6 billion euros ($2.95 billion).

"The project is starting to become a reality, it is progressing at a very good pace, even faster than expected," he said.

"Today we are setting in motion a key milestone to make a hydrogen infrastructure a reality in Spain."

Enagas is among the staunchest supporters of a green hydrogen industry, which uses renewable energy for its production, and still faces high costs, heavily depends on subsidies and is struggling to find buyers for its production.

With Spanish gas demand falling, the company is diversifying into managing a network of hydrogen infrastructure. It is also targeting ammonia and CO2 capture. To fund its plans, it has sold assets, reduced dividends and cut debt.

The plans are in line with Spain's ambitious green agenda. Thanks to abundant solar and wind power, the country is vying to be a European leader in green hydrogen. It set a 2030 target of 12 gigawatts for electrolyzers used to make green hydrogen.

($1 = 0.8811 euros)

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