Enagas, the Spanish gas grid operator, said on Tuesday that it intends to spend 4.76 billion euros ($4.77 billion) by 2030 on initiatives to assure energy supply security and decarbonisation.
The corporation intends to invest almost 2.8 billion euros on initiatives like as gas infrastructure, renewable hydrogen, and biomethane generation in its strategic strategy until 2030.
When interconnector projects such as an undersea gas pipeline between Spain and Italy and a gas connection between Spain and Portugal are included in, Enagas estimates a total investment of 4.76 billion euros.
Such interconnector projects are part of the European Commission’s 210 billion euro plan, launched in May, to decrease reliance on Russian fossil resources and hasten the energy transition.
The invasion of Ukraine by Russia, Europe’s primary gas supplier, has pushed the European Union to reconsider its energy policy amid growing fears about supply disruptions. Russia provides 40% of the bloc’s gas and 27% of its imported oil.
“The strategic plan has one key purpose: to contribute to security of supply and decarbonisation, which are two sides of the same coin,” Enagas CEO Arturo Gonzalo Aizpiri said.
Renewable or green hydrogen is being heralded as the energy of the future, offering a versatile and zero-emission fuel for transportation and power production.
According to a group of 31 European transmission system operators, between 60% and 75% of Europe’s natural gas infrastructure may be utilized for hydrogen.
Enagas intends to invest in 30 renewable hydrogen production projects, as well as infrastructure such as storage facilities.
According to Enagas, by 2030, Spain might send 21 billion cubic meters, or 2 million tonnes of hydrogen per year, to Europe, accounting for 20% of the hydrogen production predicted in Europe.
The business forecasts its EBITDA, or core profits adjusted for dividends, to rise at a compound annual rate of 2%, with a net profit of 380-390 million euros, including capital gains from asset rotation and an impairment relating to Tallgrass Energy in the United States.
Enagas also stated that its dividend would be increased by 1% each year in 2022 and 2023, to 1.70 euros per share and 1.72 euros, respectively, and will remain at 1.74 euros per share between 2024 and 2026.