Transporting hydrogen produced in Spain to Northwest Europe would add just €0.60 ($0.68) to €1 ($1.14) per kilogramme, partners in the cross-border H2Med pipeline have claimed.
The H2Med Alliance, led by transmission system operators (TSOs) Enagás, NaTran, OGE, Ren, and Teréga, said its analysis reinforced the role of pipelines connecting “competitive” green hydrogen production with consumption centres.
Unveiled in 2022, the H2Med project will be made up of two major cross-border pipelines from Portugal to Spain (CelZa) and Spain to France (BarMar), at a combined cost of €2.85bn. It has secured €35.5m ($40.4m) in EU grants.
The two legs will link national pipeline networks, allowing volumes to be carried to industrial users. Last year, a call for interest saw 528 projects register interest in using the infrastructure, though no volumes were disclosed.
Pipelines are generally regarded as one of the lowest-cost options for moving large hydrogen volumes over long distances.
While the assumptions behind H2Med’s €0.60 to €1/kg range were not disclosed, the estimate gives an indication of landed prices.
According to Iberian gas market operator Mibgas’ green hydrogen-focused IBHYX index, RFNBO hydrogen is currently valued at around €6.25/kg ($7.11) in the region.
On that basis, adding H2Med’s estimated transport cost would imply a Northwest European delivered price of roughly €6.85 ($7.79) to €7.25/kg ($8.25), before any additional applicable tariffs or charges.
Enagás CEO Arturo Gonzalo said green hydrogen would be a “key factor” in improving energy security.
“H2Med embodies this European vision by connecting the exceptional renewable potential of the Iberian Peninsula with Europe’s main industrial centres, and contributing to a more integrated, resilient, and efficient energy market,” he said.
Major projects in Spain and Portugal have been among the winners of subsidies from the early European Hydrogen Bank rounds.
Enagás had previously warned that low proposed remuneration rates for hydrogen networks could undermine investments due to higher upfront costs and longer payback periods amid low market offtake.
The H2Med project is set to begin carrying volumes from 2032, with the subsea BarMar leg designed to have capacity to carry up to two million tonnes per year of hydrogen.
However, the BarMar section only entered front-end engineering design earlier this year, leaving a tight development window ahead of the start-up target.
Partners expect to validate the project’s financing mechanism in 2026 before beginning detailed engineering, permit management, procurement and construction.
