Spain accelerates toward a hydrogen-led energy future with a major market test and cross-border corridors

No time to read?
Get a summary

Spain is actively shaping the future of energy with a bold push into hydrogen and renewables. The aim is to become Europe’s leading hub for green hydrogen production, industrial use, and export as the green gas market grows. The country is now launching its first market test to gauge genuine interest from energy companies in producing green hydrogen and to estimate the scale of industrial demand.

Enagás, the operator of Spain’s gas system and pipeline network, plans to measure for the first time the balance of supply and demand for green hydrogen. Green hydrogen is produced with electricity from renewable sources, and the objective is to transport this gas through pipelines to production centers and to facilities that will consume it.

Energy groups and industrial players already hold a large portfolio of nearly a hundred renewable hydrogen projects. Enagás has outlined corridors totaling almost 3,000 kilometers to move this new green gas across Spain and into Europe. This infrastructure lays the groundwork for a robust internal network and a Europe-facing export route.

These corridors were designed around initial demand estimates. Now Enagás is collecting more precise data from companies to refine the layout, adjust corridor dimensions, resize the overall network, and even accelerate deadlines if needed. Some routes were planned for 2030, others for 2040.

Market research

On Tuesday, Enagás shared the market objectives of its macrotest with hydrogen producers, industrial buyers, energy marketers, distributors, and market intermediaries. The process runs from September 22 to November 17 as a non-binding call for interest. Producers and buyers can indicate whether they would use future gas corridors and share detailed information about their hydrogen projects on the Spanish market.

Another non-binding phase, known as an open season, will begin in 2024 to collect deeper information from companies. A third phase is planned for 2025 with binding offers, marking the start of customer acquisitions. It will essentially be pre-sales for the capacity of tubes to transport hydrogen from production centers to the facilities that will use it.

“We need data to see whether the infrastructure proposal truly matches the needs of the Spanish market. Real data will guide any design changes to corridor layout and size,” said Natalia Latorre, general manager of Enagás Energy Transition.

The industry has shown strong support for the call for interest, with over 110 letters of support from companies and associations representing roughly 90 percent of the hydrogen value chain and close to 95 percent of current gray hydrogen producers and users.

Similar calls for interest have already been activated by other European countries like France, Belgium, and the Netherlands to gauge interest in green hydrogen as a cornerstone of the energy transition. The aim is to replace fossil gas in key sectors with green hydrogen that produces no emissions and can decarbonize those sectors that cannot be fully electrified.

The hydrogen backbone

Enagás has spent years developing what is known as the Spanish hydrogen backbone. This includes major internal transport corridors and international links with France and Portugal through the H2Med project, with investments expected to reach about 7 billion euros.

Spain plans two large domestic green hydrogen corridors by 2030 and has asked the European Commission to recognize them as projects of common interest to unlock EU funding for essential investments. The current call for interest centers on measuring potential domestic demand for these early corridors.

The internal network features a corridor linking Huelva, Puertollano, Zamora, and Gijón, and another connecting Gijón, Barcelona, and Cartagena. Authorities also seek EU funds to build two underground hydrogen storage facilities in Cantabria and the Basque Country. Enagás estimates a domestic investment need of about 4.670 billion euros for these installations.

Berlin presentation

The internal corridor network will move hydrogen between production sites and consuming markets and will fuel a broader European connection. Spain, France, and Portugal have agreed to promote the first major hydrogen corridor in the European Union, later joined by Germany, in a project known as H2Med with around 2.5 billion euros in planned investments.

The original pact among Madrid, Paris, and Lisbon planned a two-section link to be operational around 2028–2030. One section would connect Spain and Portugal from Celorico da Beira to Zamora, and the other would link Spain and France from Barcelona to Marseille. With Germany on board, the corridor would stretch from France into Germany.

Enagás and its European partners are preparing a major event to unveil hydrogen corridor plans on October 18 at the Spanish Embassy in Berlin. The company’s CEO, Arturo Gonzalo Aizpiri, will present Spain as a pivotal player in the hydrogen revolution and highlight H2Med’s benefits to the German government and industry.

Gonzalo stated that it is a significant opportunity for Spain to meet Europe’s large industrial needs while also satisfying domestic demand. Projections suggest Spain could become a leading hydrogen supplier globally, with Europe, especially Germany, potentially importing up to 2.5 million tons per year.

No time to read?
Get a summary
Previous Article

VARIED VIEWS ON RUSSIAN ATHLETE PARTICIPATION IN THE OLYMPICS UNDER SANCTIONS

Next Article

A Growing Polish-Korean Partnership in Europe and Defense