- Proposed H2Med pipeline would link Portugal, Spain, France and Germany
- January call for interest to give clear idea of likely 2030 supply volume: CEO
- Spanish TSO ‘convinced’ green hydrogen supply can match demand
Spanish gas grid operator Enagas is confident that green hydrogen supply volumes should be sufficient to feed the proposed H2Med pipeline project from Portugal to Germany by 2030, CEO Arturo Gonzalez said Oct. 24.
The company’s call for interest from potential producers should give a clear indication by January 2024 of possible green hydrogen supply volumes into the Spanish market, he said.
The timing would roughly coincide with the announcement of European Projects of Common Interest, expected early in 2024, which would confirm if the four-nation project will receive EU financial support.
The project includes an undersea pipeline between Spain and France with a capacity of 2 million mt/year of hydrogen at a cost of Eur2.4 billion ($2.7 billion), known as ‘Barmar’ for its landing points in Barcelona and Marseille.
Following a four-way memorandum of understanding signed by TSOs from Portugal, Spain, France and Germany last week, however, France Hydrogene president Philippe Boucly expressed concerns to EU media outlet Euractiv about there being sufficient supply to meet the 2030 timeframe.
France’s position as the transit country is likely to have a net neutral impact on the project, with grid inputs balanced by offtake volume, Gonzalez told analysts Oct. 24.
And, following discussions the previous week with potential German offtakers, he said he is “convinced” demand and supply can be matched.
A current estimate of German green hydrogen demand by 2030 is 3.9 million mt/year, of which 50%-70% would be imported, he said.
According to Enagas’ previous estimates, Spain might produce between 2 million and 3 million mt/year of hydrogen by 2030, while upping internal demand from 500,000 mt/year currently to nearer 1.3 million mt/year.
Spain would also import 750,000 mt/year from Portugal, giving a theoretical surplus of between 1.45 million and 2.45 million mt/year for export to France.
The project still has some way to go, with no firm investment announced by any party.
Gonzalez said he hopes an EU directive in the coming months will be swiftly adopted into Spanish hydrocarbon laws to pave the way for potential investors.
Platts, part of S&P Global Commodity Insights, assessed PEM costs in Netherlands at Eur8.65/kg ($9.17/kg) Oct. 23, down 7% on the week.
SOURCE: S&P Global
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