Spain strengthens its position in green hydrogen across Europe
Spain is cementing its leadership in green hydrogen within the European Union, supported by the largest share of initiatives on the EU’s list of European Projects of Common Interest. The list includes nearly 70 projects across the Union and signals a framework for sizable investment, potentially reaching up to 50 billion euros. In late October, the European Commission approved the list, with formal endorsement by the European Parliament and the Council still to come.
Among the 68 hydrogen-focused initiatives, the BarMar hydro canal stands out as a major component of the H2Med corridor, connecting Barcelona and Marseille with an investment reported near 2.135 billion dollars. Other notable projects include several large electrolyzers: Repsol’s T-HYNET project, Spain’s largest electrolyzer at 150 MW; a 2.5 MW unit in Bilbao developed with Petronor; and a 100 MW electrolyzer tied to a consortium led by Enagás Renovable and Engie. These efforts reflect a broader push to scale up green hydrogen production and infrastructure across Iberia and the western Mediterranean region.
Hydrogen valleys also feature prominently, with the Andalusian Hydrogen Valley led by Cepsa and the Asturias H2 Valley developed by Portugal-based energy giant EDP illustrating regional strategies to build integrated networks for production, storage, and distribution. On the storage side, two projects backed by Enagás, Kuzey-1 and Kuzey-2, carry budget estimates of roughly 580 million euros and 157 million euros respectively, underscoring the importance of secure storage in enabling reliable hydrogen supply chains.
Lack of clarity about potential demand for hydrogen
Despite Spain’s strong showing, questions remain about future demand for green hydrogen. Some industry observers and several organizations raised concerns about H2Med’s inclusion in the list during a high-level decision-making meeting. The debate centers on whether green hydrogen will reach the scale needed to justify large-scale investments in production, transportation, and storage. Critics argue that green hydrogen remains in an early development stage and that further technology advances and cost reductions are required to achieve economic competitiveness within the EU’s climate goals.
Experts remain cautious about timing and feasibility for these megaprojects, citing uncertainty about how hydrogen supply and demand will evolve. Markets, infrastructure needs, and pricing models could influence whether the ambitious plans translate into real energy and climate benefits. Energy transition researchers note a risk that extensive pipelines and facilities could be built even without robust demand forecasts, raising concerns about long-term value and policy alignment with physics and economics.
Industry voices warn that the EU’s project list may reflect policy momentum and lobbying dynamics as much as technical feasibility. The worry is that tens of billions of euros could be committed to projects whose true demand and price trajectories remain unclear. In a Euractiv commentary, analysts argued that Europe still lacks infrastructure for a decarbonized hydrogen import strategy, underscoring the need for clearer market signals in the coming years. This skepticism highlights a gap between policy ambition and on-the-ground demand scenarios.
In Spain, a recent example shows the tension between policy goals and practical realities. ArcelorMittal asked the government for flexibility to meet pledged deadlines tied to a multi-million euro subsidy for green hydrogen use by 2025, while arguing that actual supply constraints could hinder timely achievement of those targets. The episode reinforces the broader lesson: policy support must be matched with reliable supply chains and market demand to drive durable progress in the green hydrogen economy.
For official context, the European Commission maintains a central document on cross-border energy infrastructure and common-interest projects, offering authoritative background on how these projects are evaluated and funded. This resource is cited here as a factual reference rather than a direct link to external sources. Citation: European Commission energy infrastructure guidance
Overall, the discourse around green hydrogen in Europe remains iterative. The ambition is clear, but the path to scalable, economically viable hydrogen depends on balancing supply, demand, and long-term policy alignment. The ongoing debate emphasizes the need for transparent, data-driven planning to ensure investments deliver real decarbonization benefits while maintaining market confidence and fiscal responsibility.
For readers seeking more information on energy policy and infrastructure planning, ongoing analyses and industry commentaries continue to shed light on how these megaprojects might evolve and which parts are most likely to deliver practical value in the near term. Citations drawn from industry analyses, policy briefings, and expert commentaries provide context for the evolving hydrogen landscape