Enagás, the natural gas network manager, and transmission system operator (TSO), is launching a non-binding Call for Interest process for the country’s first green hydrogen backbone network. This initiative marks a crucial step in Spain’s efforts to transition to sustainable and renewable energy sources, particularly green hydrogen.
The Call for Interest, which is set to begin on the 21st, serves as a market test to gauge the interest and commitment of various stakeholders, including energy companies, industrial entities, financial groups, and natural gas distributors, in participating in the development of renewable hydrogen transport infrastructures. Enagás, in collaboration with other gas distributors, aims to establish an extensive network to transport green hydrogen efficiently to points of consumption.
The primary goals of this preliminary testing phase are as follows:
- Advance Reactor Design: Enagás intends to move closer to developing a commercially deployable green hydrogen network.
- Collect Valuable Data: The initiative aims to gather essential data related to reactor design and network operation under simulated conditions.
- Benchmark Real-World Results: The testing will provide a basis for comparing laboratory results with real-world outcomes.
It’s important to note that while this phase is non-binding, it lays the foundation for subsequent phases that could involve more detailed assessments and binding commitments. This phased approach is in line with practices observed in other countries like France, where similar mechanisms have been employed to plan tube capacity demand and facilitate the growth of hydrogen infrastructure.
Enagás CEO, Arturo Gonzalo, expressed the importance of collaboration with gas distributors in this endeavor, emphasizing their essential role in ensuring the success of the green hydrogen network. Companies like Nedgia (Naturgy), Redexis, Nortegas, Extremadura de Gas, and Madrileña de Gas are among those considered key collaborators in this ambitious project.
The green hydrogen network envisioned by Enagás aligns with the European Union’s industrial green pact and the development of the European Hydrogen Bank, which will allocate premiums through auctions to support hydrogen projects. European funds are expected to cover a significant portion of the financing for these green hydrogen infrastructures, estimated to be between 30% and 50%. From 2030 onwards, the rest of the funding will be regulated through tolls paid by network users.
While the Call for Interest focuses on the green hydrogen backbone network with investments estimated at €4.67 billion, it does not encompass the H2Med project, which involves a hydrogen pipeline linking Barcelona and Marseille, requiring an additional €2.5 billion in investments. Enagás anticipates that approximately 80% of the hydrogen backbone network can leverage its existing natural gas pipeline infrastructure, potentially reducing costs by up to 30%.
