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

Enagás Renovable, one of the leading Spanish promoters of renewable gas projects, and VERBUND Green Hydrogen GmbH, a subsidiary of VERBUND AG, Austria’s main energy company and one of Europe’s largest hydroelectric power producers, have signed a Memorandum of Understanding (MoU) to develop green hydrogen projects in Spain, aiming to contribute to emission reductions in Europe’s hardest-to-decarbonize sectors.

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

Representatives of the two companies presented the agreement at the Connecting Green Hydrogen Europe 2024 congress in Madrid. Antón Martínez, CEO of Enagás Renovable, expressed his satisfaction with the alliance between the two companies: “We are very pleased with the collaboration we have signed with VERBUND. This strategic partnership will not only strengthen the local economy but 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, highlighted the importance of this cooperation: “The Spanish market plays an important role in the growth of our hydrogen business, not only to advance local hydrogen production in Spain but also to develop import routes to Central Europe. This cooperation will leverage our joint activities in the Spanish market and stimulate the development of trans-European hydrogen infrastructure to enable large-scale supply of green hydrogen on the continent.”

Spain at the forefront of hydrogen production

Spain has excellent potential for green hydrogen production due to its geographic location, industrial and technological capabilities, renewable energy resources, and infrastructure network. These advantages will serve as a starting point for the deployment of the dedicated hydrogen transport backbone.

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

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