The Spanish government’s provisional approval for gas-grid operator Enagás to develop a national network of hydrogen pipelines, storage facilities, and interconnections with Portugal and France marks a significant step in the country’s hydrogen strategy.
Enagás has outlined a substantial investment of €4.9 billion ($5.3 billion) for the Spanish hydrogen backbone and an additional €2.5 billion for the H2Med cross-border pipeline, with €1 billion allocated to Spain. These financial commitments are substantial, but questions remain about the feasibility and return on investment.
When comparing Spain’s hydrogen infrastructure plans to other European projects, the scale and ambition are evident. However, the project’s inclusion in the European Commission’s sixth list of Projects of Common Interest (PCI) highlights the need for accelerated permitting and funding access from the Connecting Europe Facility for Energy (CEF-E). While this inclusion is advantageous, it also underscores the dependency on external funding and regulatory support, which can introduce uncertainties and delays.
The strategic importance of the H2Med pipeline, designed to enhance cross-border hydrogen transport between Spain, Portugal, and France, cannot be understated. However, the success of this initiative hinges on effective collaboration between the involved nations and seamless integration with their respective energy policies and infrastructure. Historical precedents of cross-border energy projects suggest that achieving such coordination is often fraught with political and logistical complexities.
Comparing Enagás’s hydrogen backbone project to similar initiatives globally reveals a mixed picture. While the investment figures are in line with other large-scale hydrogen infrastructure projects, the performance metrics and timelines need closer scrutiny. Successful projects typically exhibit clear milestones, robust risk management strategies, and transparent reporting mechanisms. It remains to be seen whether Enagás can meet these industry benchmarks and deliver the project within the proposed timelines and budget.
