French and Spanish operators form joint venture to develop hydrogen pipe

It announced on Thursday that French gas grid operator Natran (a unit of utility Engie) has formed a joint-venture to develop a trans-border hydrogen pipe with French storage operator Terega, and Spain's Enagas. The Barcelona-to-Marseille underwater pipeline, or Barmar, is part of a larger 2.5 billion euro ($2.93 billion) project called H2Med that will link Portugal, Spain, France and Germany by 2030, as the European Union hopes to displace some natural gas use with hydrogen, which does not emit CO2 when combusted.

When built, H2Med will have the capacity to transport approximately 10% of EU's expected hydrogen consumption by 2030. Enagas will own 50% of the Barmar venture, Natran 33.3% and Terega 16.7%.

Last month, the European Union approved funds to cover 50% of project development costs. Enagas CEO Arturo Gonzalo stated earlier this year that a final investment decision for H2Med would be unlikely to happen before 2028.

(source: Reuters)