Enagas receives approval for Spanish section of H2med hydrogen pipeline
Grid operator Enagas has received provisional approval from the Spanish Government to develop the Spanish section of the trans-European H2med hydrogen pipeline and related infrastructure projects. The H2med project, in collaboration with Spain, France, Germany, and Portugal, includes interconnections, an underwater pipeline between Spain and France, and hydrogen storage facilities.
Enagas will work with operators GRTgaz, Terega, OGE, and REN. The total cost of Spain’s hydrogen portfolio is expected to be EUR 4.9 billion, with the H2med project requiring EUR 2.5 billion in investment by 2030, EUR 1 billion of which Spain will invest.
The Spanish Government holds a 5 per cent stake in Enagas. The project may benefit from accelerated permitting and additional funds via the Connecting Europe Facility for Energy (CEF-E), as it is listed among the European Commission’s Projects of Common Interest. Enagas plans to apply for subsidies through CEF-E to support the project.
The European Commission recently approved a EUR 1.2 billion Spanish scheme to boost investments in renewable hydrogen-derived fuels, storage solutions, and renewable electricity generation. Hydrogen is expected to become one of the cheapest renewable energy options in Europe, with production costs projected to fall significantly by 2050.