Spanish transmission system operator (TSO) Enagás will allocate €3.125 billion to the deployment of renewable hydrogen infrastructure as a part of its strategic investment of €4.035 billion over the next six years.
With this investment plan, Enagás will, reportedly, increase its regulated assets between 2025 and 2030 to almost €5 billion. By 2030, the company’s hydrogen assets are expected to exceed its natural gas assets.
As disclosed, in 2025, the company expects to achieve a net profit of around €265 million, an EBITDA of around €670 million and to end the year with a net debt of around €2.4 billion.
Enagás’ ‘2025-2030 Strategic Update’ is said to include all the elements of its ‘Transition Plan’ to mitigate climate change. It promotes a “more digitalised and resilient energy model, in line with the challenges facing the energy sector,” the company highlighted, claiming that is making progress towards meeting its goal of being a net zero company by 2040.
To develop further infrastructure and services for decarbonization in areas such as CO2, LNG and BioLNG bunkering, renewable hydrogen for mobility and renewable ammonia, the company announced the launch of Scale Green Energy.
In the area of CO2 management, Enagás revealed its role will focus on the development of pipelines, liquefaction terminals and CO2 transport vessels, as well as promoting the creation of logistics hubs around LNG terminals.
Regarding LNG and BioLNG bunkering, Scale Green Energy is, reportedly, developing small-scale export terminals and has a 50% stake in two bunkering vessels in operation, as well as a 100% stake in another vessel under construction.
In the area of sustainable mobility for vehicles, Scale Green Energy is set to develop six hydrogen refueling stations in Spain, and is expected to have a total of 12 by 2030.
It is important to note that, in addition to the ‘Strategic Update,’ Enagás presented four new sections for the Spanish hydrogen backbone. This extension of the first axes of the backbone will involve an additional 1,480 kilometers of route, with an estimated gross investment of €2.135 billion, the TSO shared, adding that this financing is not included in the plan as it will take place after 2030.
2024 results – significant milestones
As for 2024 results, the company revealed that its net profit, excluding the effect of asset rotation, amounted to €310.1 million, 3.2% more than the previous year. On December 31, the TSO’s EBITDA, reportedly, reached €760.7 million.
Enagás stated that the sale of the stake in Tallgrass Energy in July had a positive impact on the company’s financial and business profile, allowing it to reduce net debt by around €1 billion to €2.4 billion, with more than 80% at a fixed rate.
Other important milestones for Enagás in 2024 include the inclusion of the first axes of the Spanish Hydrogen Backbone and the European H2med corridor in the first list of Projects of Common Interest (PCI) by the European Commission, and the mandate from the Spanish government to develop these projects.
To note, the company completed the conceptual design of the backbone, awarded the basic engineering for the first two compressor stations and is expected to deploy the ‘Conceptual Public Participation Plan’ in the coming months. The TSO plans to adopt the final investment decision (FID) at the end of 2027.
As for the H2Med corridor, the Call For Interest in the project was claimed to be a success in terms of participation, with 528 projects presented by 168 companies. The project promoters said it confirmed H2Med’s role in achieving Europe’s decarbonization and deindustrialization objectives.
It is also worth mentioning that Enagás obtained 100% of the Connecting Europe Facility (CEF) funding requested to carry out studies for its PCI in the H2med corridor, the Spanish Hydrogen Backbone and associated storage, amounting to €75.8 million for the company.