Enagás Renovable and VERBUND are partnering to explore large-scale production and transportation of green hydrogen from Spain to Central Europe

This strategic cooperation will focus on the development of large-scale green hydrogen projects in areas of Spain with high wind and solar resource potential, to produce large volumes of renewable hydrogen at low cost . The hydrogen will be exported to the European Union through the H2Med pipeline and the European Hydrogen Backbone, which is expected to be in operation around 2030.

Representatives of the two companies presented the partnership at the Connecting Green Hydrogen Europe 2024 conference in Madrid. Antón Martínez, CEO of Enagás Renovable, expressed his satisfaction with the partnership between the two companies: "We are very pleased with the cooperation we have signed with VERBUND. This strategic partnership will not only strengthen the local economy but will also allow us to export hydrogen to Central Europe, contributing to the energy transition and sustainability. Together, we will move towards a cleaner and more efficient future".

Michael Strugl, CEO of VERBUND AG, emphasized the significance of this cooperation: "The Spanish market plays an important role for the growth of our hydrogen business, not only for advancing local hydrogen production in Spain, but also for developing import routes to Central Europe. This cooperation will leverage our joint activities in the Spanish market and spur the build-up of cross-European hydrogen infrastructure to enable the large-scale supply of the continent with green hydrogen."

Spain at the forefront of hydrogen production

Spain has excellent potential for hydrogen production due to its geographical location, its industrial and technological capabilities, renewable energy resources, and its existing infrastructure network. This advantageous position will serve as the starting point for the deployment of the dedicated hydrogen transmission backbone.

Thanks to its renewable energy production potential, Spain is in a position to become a leading country in the production and export of cost-competitive green hydrogen. This is key to increasing European competitiveness and ensuring security of supply.

The agreement reinforces the need for a dedicated infrastructure network not only at national level but also at European level, connecting the Iberian Peninsula with France and Northern Europe, and enabling a competitive, liquid and pan-European market for the energy sector.

About Enagás Renovable

Enagás Renovable has a portfolio of more than 20 specific projects in Spain in the field of renewable gases and decarbonization, representing one of the largest European platforms in this field. The company's shareholding structure is made up of Enagás (60%), Hy24 -a joint venture formed by Ardian and FiveT Hydrogen- (30%), Pontegadea (5%) and Navantia -SEPI- (5%).

Enagás Renovable already has several pioneering projects in the field of renewable gases that are in line with the Hydrogen and Biogas Roadmaps for Spain and the European Union's decarbonization objectives. These include the development of Spain's first industrial green hydrogen plant, located in Lloseta (Majorca), and the commissioning of the "UNUE" biomethane production plant in Burgos, the latter being the first large-scale biomethane project to be carried out in Spain by a private initiative.

About H2Med pipeline

The Spanish operator Enagás, the French operators GRTgaz and Teréga, the Portuguese operator REN and the German operator OGE are working together to promote the H2Med project, which has been included in the first list of Projects of Common Interest under revised TEN-E, published in the Official Journal of the European Union on April 2024 as European Union's definitive list of projects of common interest (PCI) in April 2024.

H2Med aims to create a European green energy corridor connecting the Iberian Peninsula to the rest of Europe. The project includes a hydrogen interconnection between Portugal and Spain - Celorico de Beira and Zamora (CelZa) - and a maritime link between Spain and France - Barcelona-Marseille (BarMar) - to transport green hydrogen from the south to Central Europe.