Investments Start to Emerge in Europe's Hydrogen Pipeline Infrastructure

---

Researched by Industrial Info Resources (Sugar Land, Texas)--As the energy transition gains momentum globally, Europe is witnessing a surge in green hydrogen investments, and consequently, building out pipeline infrastructure to transport it. The surge is primarily driven by two key factors: energy security pertaining to sanctions on Russia, and the European Union's (EU) ambitious goal to achieve carbon neutrality by 2050.

Due to the Russia-Ukraine war, Europe's energy supplies have taken a hit as sanctions disrupt the import of natural gas from Russia. In response, Europe is swiftly pivoting toward hydrogen as a viable alternative. The continent is planning, among other initiatives, to repurpose some of its existing natural gas pipelines to transport hydrogen in order to safeguard its energy independence while also meeting its objective of reducing carbon emissions.

Industrial Info is tracking 208 such projects, worth US$11.06 billion, in Europe. Spain, Germany and the U.K. account for the major share of the investment of around US$7.19 billion, or 65% of the market. While a majority of the investments in building hydrogen pipeline infrastructure are attributed to grassroot initiatives, there are also several projects aimed at converting existing natural gas pipelines to hydrogen. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Pipelines Project Database can click here for a list of detailed project reports.

Spain is the largest spending driver with investments worth US$3.68 billion, accounting for about 33% of the total investment. Germany and the U.K. follow with sizable investments worth US$1.88 billion and US$1.63 billion, respectively.

Enagas SA (Madrid, Spain) is the dominant player in the market with spending worth US$3.36 billion. Transgaz SA (Medias, Romania) and Cadent Gas Ltd (Coventry, England) follow with investments worth US$842.63 million and US$807.14 million, respectively.

Enagas SA accounts for 30% of the investment share and is planning to invest across six projects. One of the largest projects is related to an investment of US$2.7 billion and focused on constructing a grassroot pipeline connecting Barcelona, Spain and Marseille, France. The project is a part of the H2Med-MarBar Green Hydrogen development, aiming to construct a green hydrogen network to produce and provide green hydrogen to Europe. Subscribers can click here for the project report.

Transgaz SA also is investing across numerous projects and among these, a notable project with significant spending involves the construction of a grassroot natural gas/hydrogen-ready pipeline from Amzacea to Podisor in Romania. Subscribers can click here for the project report.

About 91% of the spending is still in the planning phase, while only a small percentage has progressed to the engineering and construction phases.

Scaling up hydrogen production to meet demand, developing supply chains for hydrogen and ensuring the availability of renewable sources for green hydrogen production pose significant challenges for these projects. In addition, technical challenges will require constant improvement to infrastructure as its current components will need to be compatible with hydrogen.

Subscribers can click here for all the project reports mentioned in this article.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).