Spanish network operator Enagás has said it will invest €3.13bn ($3.26bn) into hydrogen by 2030 to make the molecule its dominant energy asset, surpassing natural gas.
The company said green hydrogen infrastructure would be its “main growth driver” and account for 83% of its $4.03bn six-year investment plan.
In doing so, Enagás believes it will enable 9.5% compound annual EBITDA growth between 2026 and 2030.
“With this investment plan, Enagás will increase its regulated assets between 2025 and 2030 to almost €5bn ($5.2bn),” the company said. “By 2030, the company’s hydrogen assets will exceed its natural gas assets.”
It comes after the operator completed the conceptual design of the Spanish Hydrogen Backbone, ahead of taking final investment decision (FID) on the 2,700km network, with two underground storage facilities.
Beyond 2030, the network could be extended by 1,480km under a €2.12bn ($2.2bn) investment.
To further its ambitions in clean energy, the company has rebranded its Scale Gas subsidiary to focus on CO2, LNG and BioLNG bunkering, green hydrogen for mobility and green ammonia.
Now dubbed Scale Green Energy, the business has already been awarded over €8m ($8.4m) to develop six hydrogen refuelling stations that will form part of the Trans-European Transport Network (TEN-T) Atlantic and Mediterranean corridors.
Despite its shift to hydrogen, Enagás acknowledges natural gas will remain crucial in managing peak electricity demand and integrating renewables.
Spain has been attempting to position itself as one of Europe’s green hydrogen-producing powerhouses, with hopes of using its low-cost and abundant renewable energy resources to drive forward plans.
Earlier this month, the government selected 16 projects for its €1.2bn ($1.3bn) hydrogen valley programme to bolster the country’s production and consumption of green hydrogen.
Read more:Spain selects 16 hydrogen valley projects for €1.2bn funding
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