Enagas Gets Initial Approval for Spanish Section of H2MED Hydrogen Pipeline
(Reuters) — The Spanish government gave a first go-ahead on Tuesday to gas grid operator Enagas to start developing the Spanish section of a planned trans-European hydrogen pipeline and related hydrogen infrastructure projects.
Enagas - in which the Spanish state owns a 5% stake - is moving to transition from its traditional role as a natural gas grid operator to managing a network of hydrogen infrastructure, taking advantage of the Spanish government's plans to become a European hub for green hydrogen.
Key to the government's and the company's plans is the flagship H2MED hydrogen pipeline project, which would connect the Iberian peninsula to France and on to Central Europe by 2030.
Enagas is teaming up with French, German and Portuguese peers to develop the project. It expects net investment of around 3.2 billion euros ($3.5 billion) through 2030 to develop its hydrogen projects, including the H2MED corridor.
On Tuesday, the Spanish government said Enagas could move forward with hydrogen projects deemed of European interest and part of the H2MED corridor, including an interconnection with Portugal, an underwater pipeline between Spain and France known as "BarMar", and hydrogen storage facilities.
The government said its approval is provisional at this stage but did not specify what further steps might need to happen before work starts.
Green hydrogen, produced using renewable energy, is seen as a key to decarbonize Europe's economy. However, given its cost, green hydrogen projects in general are currently not competitive without subsidies.
($1 = 0.9250 euros)
Related News
Related News
- Trump Aims to Revive 1,200-Mile Keystone XL Pipeline Despite Major Challenges
- Energy Transfer Reaches FID on $2.7 Billion, 2.2 Bcf/d Permian Pipeline
- Boardwalk Approves 110-Mile, 1.16 Bcf/d Mississippi Kosci Junction Pipeline Project
- $3 Billion Natural Gas Pipeline Expansion to Add 1.3 Bcf Capacity in Southeast Region
- Kinder Morgan Approves $1.4 Billion Mississippi Crossing Project to Boost Southeast Gas Supply
- Tullow Oil on Track to Deliver $600 Million Free Cash Flow Over Next 2 Years
- GOP Lawmakers Slam New York for Blocking $500 Million Pipeline Project
- Enbridge Should Rethink Old, Troubled Line 5 Pipeline, IEEFA Says
- Energy Transfer Reaches FID on $2.7 Billion, 2.2 Bcf/d Permian Pipeline
- Polish Pipeline Operator Offers Firm Capacity to Transport Gas to Ukraine in 2025
Comments