Spain appears determined to play a pivotal role in the transition to a gas and hydrogen future. After French President Emmanuel Macron signaled a pause, Madrid kept the discussion alive on the 27th. The first takeaway favored by the Spanish government is that a technical interconnections group should assess which infrastructures need reinforcement. The goal, voiced by Teresa Ribera, Vice President and Minister of Ecological Transition, is to have these elements ready in time for the winter of 2023-2024. It aligns with a strategic objective: to position Spain ahead of others for future exports of green hydrogen across the continent. The Ukraine conflict opened a window of opportunity to accelerate a project the government did not want to miss, as noted in formal remarks outside a recent briefing.
“Spain today sits at the heart of natural gas and has a long‑term plan to join the hydrogen game”, says Andrés Schuschny, a renewable energy professor at the International University of Valencia. He emphasizes that the push also aims to spark demand and dialogue as several EU funds are at stake. Many European nations are competing for energy gains, and Spain’s strategy is to attract investment while integrating the hydrogen value chain.
Following the invasion of Ukraine, the European Union raised its targets for green hydrogen to 2030, aiming for up to 10 million tons produced and 10 million tons imported. Narcís de Carreras, CEO of Nedgia, explained at a recent energy forum that the EU currently produces about 0.6 million tons of gray hydrogen. Arturo Gonzalo Aizpiri, Enagás CEO, and others at the forum argued that the MidCat concept has a practical rationale as a major potential conduit for hydrogen exports from Spain to European consumers, aligning with RepowerEU plans.
Green hydrogen remains an energy vector under development due to its cost, yet it offers decarbonization opportunities in sectors where electrification is difficult, such as heavy industry or long‑haul transport. To accelerate this, the government approved a PERTE initiative last year, allocating 1,555 million euros to advance hydrogen technology and create a new industry. Major energy players including Iberdrola, Endesa, Naturgy, Repsol, Acciona, and Enagás have begun several projects to push the sector forward.
Spain and France agree to jointly evaluate MidCat with EU technicians
The first two PERTE grant calls, launched in December, proved highly successful. One call supported pioneering projects and attracted more than 126 proposals with a total value near 700 million euros, exceeding the budget fivefold. The other call focused on the value chain, improving R&D and production capabilities, and nearly doubled its budget with 92 projects valued at roughly 525 million euros, according to the Ministry of Ecological Transition. The government expects to support more than 1,000 megawatts of electrolyzers by the end of 2023, aiming for 4,000 megawatts of installed capacity by 2030 and covering about a quarter of the industrial energy demand.
The path ahead is demanding
The challenge is sizable, and Spain faces competition from other early movers. Marta Sánchez of EY, speaking at an energy forum, notes that Spain excels on the supply side thanks to high renewable generation but lags on the demand side. Pilot projects for hydrogen boilers are already underway in the United Kingdom, illustrating a need to balance demand with supply. Fidel López Soria, CEO of Redexis, echoed the sentiment that balancing the complexity of evolving demand and supply is essential as the sector grows.
The Spanish administration has moved to create guarantees of origin, a system designed to certify clean gases versus fossil-based ones. Yet leaders like Emilio Bruquetas of Reganosa and Arturo Gonzalo Aizpiri of Enagás stress that more work remains, including integrated electricity and gas planning. For renewable hydrogen production, the largest solar and wind installations must align with electricity planning and any regulations addressing potential technical or financial hurdles.
France’s stance acts as a brake
When Spain demonstrates the ability to produce green hydrogen, export is the next step. The MidCat concept reemerges with more practical considerations, as Professor Andrés Schuschny notes that transporting hydrogen requires advanced materials and coatings due to its corrosive nature. He explains that moving hydrogen through a pipeline currently limited to a fraction of hydrogen in the mix would demand sophisticated technology. Although discussions could span years, the war presents an opportunity to push the project forward. Gonzalo Aizpiri cautions that Europe must address a bottleneck in interconnections, and French system operators are watching closely.
Environmentalists question the necessity of MidCat
Despite theoretical backing, the French government’s stance has faced pushback. Ribera pointed out that France faces a more intricate electricity mix, with many nuclear units offline, complicating cross-border pipelines. She acknowledged Europe’s emphasis on smarter use of infrastructure and coordination among member states, stressing that this is not about imposing a single path but reconciling European interests. The aim is to keep European options open and accessible across the continent.
Hydrogen PERTE shows early results
The government launched the initial PERTE calls for renewable energy, hydrogen, and storage in December with a budget of 400 million euros. Public data indicates that companies submitted requests totaling more than 1.2 billion euros across 218 projects. Early analyses indicate potential electrolyzer installations ranging from 315 to 500 megawatts, with final outcomes expected in the coming months. The program also targets a broad coalition: 42 large companies, 44 small and medium enterprises, 31 consortia, and several public bodies. Projects span nearly the entire country, including demographically challenged areas and island regions. Most projects rely on proton exchange membrane technology, with some alkaline systems and other approaches represented. The power range centers on 0.5 to 5 megawatts per electrolyzer, with many projects planned to be interconnected to the wider grid.
In parallel, the European Commission highlighted four Spanish projects within the IPCEI framework, underscoring cross‑border collaboration and shared R&D ambitions. With ongoing and upcoming funding streams, Spain is poised to install more than 1 gigawatt of electrolyzers by the end of 2023, contributing to 25 percent of the 2030 target. This momentum is part of a broader European push to secure hydrogen supplies while aligning with green energy strategies across North America and other partners. (Attribution: El Economista Energy Forum)