An Iberian Hydrogen underwater pipeline at a cost of EUR 2.5 billion was just announced by the Prime Ministers of Spain, Portugal and France. The pipeline, that will be used to export Green Hydrogen to EU countries, is expected to be operational by 2030.
The Iberian pipeline will not only decrease the EU dependence on fossil fuels but will also drive the transition towards Green Energy. The pipeline, that will link Barcelona to Marseille, will export 2 million tons per year, that is 10% of EU consumption.
Portugal’s Prime Minister António Costa stated that the new connections will allow Portugal to produce and export Green Hydrogen to Europe. The H2Med project is the first major Green Corridor that will link the Iberian peninsula to Marseille. As Marseille is the gateway to northern Italy and Germany, these countries are expected to become large consumers of Green Energy.
Prime Minister António Costa explained that the project is an additional source of energy that will be produced on the Iberian Peninsula for export to European countries. He added that there are four electrical interconnections that are agreed upon, with two that are already operational and two that will soon be implemented. According to Portugal’s Prime Minister, the existing natural gas connections between Portugal and Spain will be complemented by a corridor that will be dedicated exclusively to Green Hydrogen.
This new project is a paradigm shift as Portugal will no longer be simply an energy importer and exporter, for the country will consolidate its position by producing energy for exporting to Europe. The Iberian Peninsula is one of the best locations in Europe for the development of renewable energy, especially solar energy, that will be used for producing Green Hydrogen. Portuguese Prime Minister stated that this is the reason why energy prices are lower compared to other European countries, and this means that Green Hydrogen produced on the Iberian Peninsula will be sold at competitive prices. This new source of energy will not only meet the demands of consumers on the Iberian Peninsula but will be exported to the rest of Europe.
The export capacity of the Iberian Peninsula to supply energy to European countries means that this is a project of common interest for the EU as it aims at decreasing its energy dependence on third parties. As such, EU funding could be obtained to cover half of the cost.
While Spain and Portugal account for 40% of Europe’s LNG capacity, these two countries are now aiming at becoming leaders in the production of Green Hydrogen. An offshore Hydrogen pipeline is a one-of-its-kind project with innovation driving the EU’s energy transition.
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