HomeNewsSpain's Enagas plans multibillion-euro investment in H2 infrastructure

Spain's Enagas plans multibillion-euro investment in H2 infrastructure

2/18/2025
  • Enagas to invest €4.04 B by 2030
  • Hydrogen (H2) to account for €3.13 B of investment
  • Enagas also plans to diversify in ammonia and CO2 capture
  • Expects decline in profitability this year

Spanish gas grid operator Enagas plans to invest more than €4 B ($4.18 B) by the end of the decade, with more than three quarters of that earmarked for H2 infrastructure.

With Spanish gas demand falling, Enagas has sold assets, reduced dividends and cut debt to fund plans to diversify into managing a network of H2 infrastructure. It is also targeting ammonia and CO2 capture.

H2 will be "the driving force to advance towards the Enagas of the future," Chief Executive Arturo Gonzalo said on Tuesday.

Of the planned €4.04 B in net investment between 2025 and 2030, H2 infrastructure will account for €3.13 B, Gonzalo told analysts as he presented the company's strategic update.

Enagas, in which the state owns a 5% stake, is part of a consortium working on the planned trans-European H2Med corridor aimed at connecting Iberia's H2 networks with northwest Europe. It also plans to build a H2 network in Spain.

The company expects to invest €520 MM in gas networks and a further €225 MM in a new company, Scale Green Energy, focused on infrastructure and services in businesses such as CO2 capture.

The company expects core profit of about €875 MM in 2030. The H2 business is expected to contribute about €290 MM, with its other gas business contributing €400 MM.

This year's core profit is forecast to fall to €670 MM from €760.7 MM last year, the company said, with net debt remaining around €2.4 B.

($1 = €0.9561)

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