Spain aims to become the world’s leading hub for renewable hydrogen, building a future-oriented network where electricity from wind, sun, and other renewables powers hydrogen production. The government backs wide corridors of hydro channels, linking domestic routes with international connections to move energy across borders.
Green hydrogen is touted as a coming energy revolution that could replace natural gas in sectors hard to electrify. The sector is preparing for change, and administrations are actively supporting initiatives. Yet the scale and speed of the shift remain to be proven through real-world tests and measured results.
To gauge genuine interest from industry and large consumer groups, Spain embarks on a major market test. Enagás, the operator responsible for the Spanish gas system and its pipeline network, plans to introduce the country’s first hydrogen supply and demand matching mechanisms during 2023, according to documents filed with the CNMV and presented in its annual results briefing.
This plan positions Enagás as a live test bed for aligning anticipated industrial hydrogen use with the output expected from energy providers. The initial mechanisms will be non-binding and are not expected to operate at full capacity until the latter half of the year.
The project envisions a testing ground for the first robust survey of how much major industry might actually use green hydrogen, and to gauge demand that helps size future plans for infrastructure and transport networks. The effort aims to collect practical insights for planning and scaling energy transport of hydrogen over time.
As a backdrop, the government is waiting for the National Integrated Energy and Climate Plan to be updated. That plan will map how hydrogen and other technologies fit into national electricity generation by 2030, and outline how the Ecological Transition Ministry will manage changes in the sector, subject to review and amendments by the European Commission.
Arturo Gonzalo Aizpiri, the chief executive of Enagás, has indicated a push to involve major gas distributors in this new matchmaking framework, already operating within gas networks. Potential participants include Nedgia (Naturgy), Redexis, Nortegas, Extremadura Gas, and Madrileña de Gas, among others. The CEO stressed the need for gas distributors to be part of this joint effort to unlock hydrogen’s potential in Spain.
H2 backbone
Enagás has long worked on a design for a hydrogen backbone in Spain, envisioning major internal transport corridors and international links. Green hydrogen, produced with renewable electricity and without CO2 emissions, is planned to grow as production and demand rise.
Spain, France, and Portugal joined forces to promote a major hydrogen corridor within the European Union, later expanding the vision with Germany. The ambitious H2Med project is central to this plan, with investments around 2.5 billion euros aimed at accelerating the renewable hydrogen revolution and gradually replacing natural gas in sectors where electrification is challenging.
The original framework, agreed by Madrid, Paris, and Lisbon, envisioned a two-part corridor operational between 2028 and 2030. One section would link Spain to Portugal, between Celorico da Beira and Zamora, with an investment of roughly 350 million. The other would connect Spain to France, spanning Barcelona to Marseille through a subsea link estimated at over 2.1 billion. Berlin would later be connected as part of a broader European extension, with plans to reach additional northern and central European countries.
Spain, France, and Portugal submitted H2Med for European Union funds covering 30 to 50 percent of the planned investment. Spain also filed a separate request for the EU to recognize the project as a matter of common interest, supporting the construction of two long internal green hydrogen transport corridors.
The corridor project encompasses several key nodes, including Huelva, Puertollano, Zamora, and Gijón, with a second route linking Gijón, Barcelona, and Cartagena. The government is also pursuing EU funding to develop two underground hydrogen storage facilities in saline cavities located in Cantabria and the Basque Country. Enagás estimates total investment needs around 4.67 billion euros for these internal facilities.
Even as PNIEC updates unfold, Spain targets substantial growth in green hydrogen capacity, aiming for up to 4 gigawatts by 2030. That target would roughly align with 10 percent of the European Union’s stated hydrogen strategy for the continent, signaling a bold push toward hydrogen as a cornerstone of the energy transition.