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Green Hydrogen H2 News

Enagás could manage a transportation network compatible with hydrogen project in Mallorca

Arnes BiogradlijaBy Arnes Biogradlija28/11/20222 Mins Read
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The National Commission for Markets and Competition (CNMC) has released the final resolution that upholds Enagás Transporte’s certification as the manager of the gas transmission network in Spain, subject to compliance with “certain conditions” regarding Enagás’ participation in the “Power to Green Hydrogen Mallorca” project, which is related to the production of green hydrogen and was developed in partnership with Acciona.

This industrial project involves “generation and supply” activities, and Enagás Renovable, a subsidiary of Enagás, which is also the sole shareholder of Enagás Transporte, owns 44% of the promoter business.

The CNMC evaluated whether there was a conflict between Enagás Renovable’s 44% ownership of the “Power to Green Hydrogen Mallorca” project and the company’s management of Spain’s gas transportation network, Enagás Transporte.

To ensure that Enagás complied with the Hydrocarbons Law, which mandates that the owners of facilities in the primary gas pipeline network meet independence requirements with respect to production and supply activities, the regulator imposed a number of conditions on Enagás in a provisional resolution dated July 14.

One of those requirements was for Enagás to “retain its independence with regard to the future appointments of the representatives of Enagás Renovable for the purposes of adopting the decisions that correspond to it as a shareholder of Power to Green Hydrogen Mallorca and new appointments of members of the board of administration” of that company.

Additionally, the CNMC has stated that Enagás will be required to “send information on the general meetings of the company Power to Green Hydrogen Mallorca, information on the agreements it signs directly or through its subsidiaries with other shareholders of Power to Green Hydrogen Mallorca or with other shareholders of Enagás Renovable, and information on the modification of agreements currently in force.”

“The CNMC has confirmed compliance with the provisions indicated in the provisional resolution, both the specific commitments expressed by Enagás to guarantee its independence and that of its subsidiaries regarding the exercise of voting rights in the Power to Green Hydrogen Mallorca meeting and regarding of the appointment, designation, or proposal of directors of the aforementioned company, as well as those related to the submission of supporting information,” added the statement.

As a result, the CNMC has consented to keep Enagás Transporte’s certification as the manager of the transmission network, however subject to fulfillment of the stated requirements.

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