Spanish government has outlined plans for an extensive network of hydrogen pipelines, connecting the country internally and reaching out to Europe.
In a proactive move to gauge the genuine interest of energy companies in producing green hydrogen and the enthusiasm of industries to consume it, Enagás, the manager of Spain’s gas system and gas pipeline network operator, is about to embark on a groundbreaking market test. This test aims to assess the supply and demand potential of green hydrogen in the Spanish market while evaluating the willingness of energy firms and industries to utilize the forthcoming hydrogen pipelines.
Enagás is set to unveil the details and objectives of this monumental ‘macrotest’ next week. It marks the first time that such an initiative will be undertaken in Spain, offering a preliminary glimpse into the appetite for green hydrogen production and consumption. The ‘call for interest’ phase will extend for two months, beginning on September 22, during which producers and consumers will submit non-binding offers to access the hydrogen network.
Following the initial market test, 2024 will witness another crucial phase. Enagás will open a process to collect binding offers from companies, effectively initiating a pre-sale of the hydrogen pipeline capacity. This step will serve as a pivotal moment in attracting customers for the forthcoming hydrogen highways, setting the stage for the transportation of hydrogen from production centers to industrial consumers.
Green hydrogen, produced exclusively from renewable energy sources, is poised to revolutionize the energy sector. Its primary goal is to replace conventional natural gas in industries where electrification is challenging, offering a clean energy alternative.
Enagás has been diligently crafting Spain’s hydrogen infrastructure, referred to as the Spanish hydrogen backbone. This ambitious project encompasses the construction of extensive internal transport corridors and international connections, with an estimated investment of €7 billion. As demand for green hydrogen grows, so too will the expansion and development of this hydrogen network.
The initial market test focuses on the use of Spain’s internal corridors for hydrogen transportation within the country. Spain has proposed the creation of two major internal green hydrogen transport corridors, which are under consideration for recognition as EU Projects of Common Interest. These corridors will receive European funding to support the necessary investments.
One of these corridors will link Huelva, Puertollano, Zamora, and Gijón, while the other will connect Gijón, Barcelona, and Cartagena. Spain is also pursuing EU funding for the construction of underground hydrogen storage facilities in Cantabria and the Basque Country. Total investments for these domestic installations are estimated at €4.67 billion.
Spain, France, Portugal, and later Germany have joined forces to create the H2Med project, aiming to establish the first major hydrogen corridor in the European Union. With planned investments of nearly €2.5 billion, this ambitious endeavor involves connecting the participating countries with a network of hydrogen pipelines. Initially, it will run through Spain, France, and Portugal before extending further into Europe.
Spanish energy companies and industrial groups have ambitious plans to construct 94 green hydrogen production plants by 2030. These projects boast a combined electrolyzer capacity of nearly 17,200 megawatts (MW), significantly surpassing the Ministry for Ecological Transition’s target of 11,000 MW in green hydrogen production by 2030. This visionary megaplan is poised to transform Spain into a global leader in green hydrogen production.
