The Basque Country is strategically preparing to play a central role in the emerging hydrogen economy, allocating nearly €45,000 in its 2026 budget for studies on native hydrogen, helium, and aggregate extraction.
While these funds are earmarked primarily for research and planning rather than immediate extraction, they reflect a proactive stance as regional and European peers advance hydrogen exploration and production.
The Department of Industry, Energy Transition, and Sustainability emphasizes that the allocation is designed to support technical assessments and feasibility studies rather than active exploitation. Minister Mikel Jauregi confirmed that the budget aligns with routine planning activities, including the preparation of reports on the aggregates market and former quarries, alongside emerging interests such as native hydrogen. The focus remains on creating a robust technical foundation to evaluate future opportunities rigorously and scientifically, without presuming the existence of extractable resources.
Parliamentary inquiries from EH Bildu highlighted concerns about whether these studies might represent initial steps toward resource exploitation. Councilor Jauregi clarified that the funds are general in nature and not tied to specific projects, surveys, or geological assessments. The budget ensures that technical tools are available to respond to potential circumstances while maintaining compliance with ongoing energy policy reforms, including the dissolution of Shesa and the divestment from hydrocarbon-related activities.
Beyond preliminary research, the Basque Country is poised to become a central hub in green hydrogen distribution. Enagás’s planned network will mobilize between €350 million and €400 million of investment across 50 municipalities, covering 163 kilometers in the first phase. The pipeline will link the Reocín-Arrigoriaga section, spanning approximately 38 kilometers within Basque territory, to the Arrigoriaga-Haro section of 125 kilometers, effectively connecting the region to the broader Cantabrian coast hydrogen corridor. Construction is scheduled to begin in 2028 and conclude by 2030, after which the network will progressively integrate with industrial clusters in the Ayala valley, the Bergara-Irun corridor, and eventually cross into France.
The Basque government is also actively advancing new economy sectors alongside hydrogen development. Investments in advanced technology, artificial intelligence, renewable energy, and circular economy initiatives have contributed to the rise of 56,000 companies and commercial licenses operating in these fields by mid-2025. In tandem, economic cluster strategies, such as the food sector cluster, aim to consolidate production, processing, and technology deployment to maximize GDP contribution and enhance competitiveness.
Circular economy policies complement these initiatives, with the UAE’s model cited as a comparative framework in regional discussions. Policies under consideration include developing green infrastructure, circular water management, reverse logistics, sustainable aviation fuel adoption, and expanding the use of recycled content across industries. In the Basque context, such approaches intersect with hydrogen infrastructure planning, highlighting the broader sustainability agenda underpinning industrial and energy transitions.
