Spain's Enagas Plans $4.18 Billion Investment in Hydrogen Infrastructure
(Reuters) — Spanish gas grid operator Enagas plans to invest more than 4 billion euros ($4.18 billion) by the end of the decade, with more than three quarters of that earmarked for hydrogen 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 hydrogen infrastructure. It is also targeting ammonia and CO2 capture.
Hydrogen 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 billion euros in net investment between 2025 and 2030, hydrogen infrastructure will account for 3.13 billion euros, 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 hydrogen networks with northwest Europe. It also plans to build a hydrogen network in Spain.
The company expects to invest 520 million euros in gas networks and a further 225 million euros in a new company, Scale Green Energy, focused on infrastructure and services in businesses such as CO2 capture.
The company expects a core profit of about 875 million euros in 2030. The hydrogen business is expected to contribute about 290 million euros, with its other gas business contributing 400 million euros.
This year's core profit is forecast to fall to 670 million euros from 760.7 million euros last year, the company said, with net debt remaining around 2.4 billion euros.
($1 = 0.9561 euros)
Related News
Related News
- Army Corps Lists Enbridge’s Line 5 as ‘Emergency’ Project Eligible to Bypass Environmental Review
- Missouri Loses Control Over 1.5 Million-Mile Gas Pipeline Network as Feds Step In
- 1,000-Mile Pipeline Exit Plan by Hope Gas Alarms West Virginia Producers
- Greenpeace Ordered to Pay $667 Million to Energy Transfer Over Dakota Access Pipeline Protests
- Canada’s Canceled Oil Pipelines: The Projects That Didn’t Make It
- Army Corps Lists Enbridge’s Line 5 as ‘Emergency’ Project Eligible to Bypass Environmental Review
- Michigan Court Backs Permits for Enbridge’s Line 5 Pipeline Tunnel Project
- Editor’s Notebook: Fire Fuels Pipeline Concerns
- Missouri Loses Control Over 1.5 Million-Mile Gas Pipeline Network as Feds Step In
- Enbridge Plans $2 Billion Upgrade for North America’s Largest Crude Pipeline
Comments