Enagás will invest €4.035 billion by 2030, with green hydrogen as the pillar of its growth

The recurring result, which also reflects the high level of compliance with the 2022 - 2030 Strategic Plan and the company's positive performance, is above the annual target of €270 - 280 million. This good performance is mainly due to Enagás’ Efficiency Plan – with strict control of operating expenses – the contribution of the affiliates, and the improvement in the financial result.

By the 31 December, the company’s EBITDA reached €760.7 million, above the target for the year (€730 - 740 million).

The sale of the stake in Tallgrass Energy in July had a positive impact on the financial and business profile of Enagás, which allowed it to reduce net debt by around €1 billion to €2.4 billion, with more than 80% at a fixed rate.

The company also has a strong liquidity position of €3.252 billion, which places it in a good position to embark on a new phase of investment that is key to the decarbonisation and competitiveness of Europe and Spain.

The improved risk profile has also led to an upgrade in Enagás’ credit rating by S&P and Fitch, from BBB to BBB+.

Milestones in the implementation of Enagás' strategic plan in 2024

2024 was a key year for Enagás, in which it laid the foundations for its future growth. The company changed its capital structure, approving a sustainable dividend policy in line with its peers.

In addition to the sale of Tallgrass Energy, another important milestone was the favourable resolution of the Gasoducto Sur Peruano (GSP) arbitration, in which the ICSID ruled in favour of Enagás, emphasising that it had acted as a third party acting in good faith.

Other important milestones for Enagás in 2024 were the inclusion of the first axes of the Spanish Hydrogen Backbone and the European H2med corridor in the first list of Projects of Common Interest (PCI) by the European Commission, and the mandate from the Spanish Government to develop these PCI projects.

Spain leads the energy transition in Europe

Spain is leading the energy transition in Europe with unprecedented speed, marked by major advances in hydrogen. Enagás claims to be at the forefront of this process.

The company has already completed the conceptual design of the Spanish Hydrogen Backbone, awarded the basic engineering for the first two compressor stations, and will deploy the Conceptual Public Participation Plan in the coming months. Enagás plans to adopt the Final Investment Decision (FID) at the end of 2027.

The Call For Interest of the European H2med corridor – the results of which Enagás presented on 10 February together with the operators NaTran, Teréga, REN, and OGE – was a success in terms of participation, with 528 projects presented by 168 companies. The results of this initiative consolidate H2med as an advanced hydrogen corridor in Europe.

Enagás has also obtained 100% of the Connecting Europe Facility (CEF) funding requested to carry out studies for its Projects of Common Interest (PCI) in the H2med corridor, the Spanish Hydrogen Backbone, and associated storage, amounting to €75.8 million for the company.

Strategic update: €3.125 billion for hydrogen by 2030

In the presentation of its strategic update, Enagás has announced an investment of €4.035 billion over the next six years, which will allow the company’s EBITDA to grow by 9.5% per year between 2026 and 2030.

Of the total investment – 83% of which is eligible according to the EU taxonomy until 2030 for its contribution to the environmental objective of mitigating climate change – €3.125 billion will be allocated to the deployment of renewable hydrogen infrastructure, which will be the company’s main growth driver.

With this investment plan, Enagás will increase its regulated assets between 2025 and 2030 to almost €5 billion. By 2030, the company’s hydrogen assets will exceed its natural gas assets.

In addition, the company presented four new sections for the Spanish Hydrogen Backbone to the second call for PCI, based on the results of the Call For Interest launched in 2023. This extension of the first axes of the Spanish Hydrogen Backbone will involve an additional 1480 km of route, with an estimated gross investment of €2.135 billion. This investment is not included in the strategic update as it will take place after 2030.

Sustainable dividend and 2025 targets

In 2025, Enagás expects to achieve a net profit of around €265 million, an EBITDA of around €670 million, and to end the year with a net debt of around €2.4 billion. The company will pay a dividend of €1 per share.

Enagás’ balance sheet supports a sustainable dividend policy beyond 2026.

Enagás launches Scale Green Energy

The company has announced the launch of Scale Green Energy to develop further infrastructure and services for decarbonisation in areas such as renewable hydrogen for mobility and renewable ammonia.

In the area of sustainable mobility for vehicles, Scale Green Energy has obtained 100% of the CEF funding requested to develop six hydrogen refuelling stations in Spain, and will have a total of 12 by 2030, representing 15% of the hydrogen refuelling stations planned in the National Action Framework.

Positive trend in industrial demand

In 2024, the positive trend in industrial demand in Spain continued, with a growth of 4.2% to 176.8 TWh. This trend has enabled sustained growth of 8.1% between 2022 and 2024.

In times of low renewable generation, combined cycle power plants play a crucial role in electricity generation, as was the case during historical peaks in demand, such as in July 2022 and December 2024, when the maximum demand for electricity generation in the last two years was reached.

During peak days of gas demand for electricity generation, more than 85% of the low wind and solar generation was covered by combined cycles to guarantee electricity supply.

ESG commitment results

The company maintains its place in sustainability and in meeting its intermediate decarbonisation targets with a 22.5% reduction in CO₂ emissions by 2024, and is making progress towards meeting its goal of being a net zero company by 2040.

Enagás’ 2025-2030 strategic update includes all the elements of the company’s transition plan to mitigate climate change, in accordance with the Corporate Sustainability Reporting Directive (CSRD), including an action plan – both in its own operations and in the value chain – to achieve decarbonisation commitments. This strategic update promotes a more digitalised and resilient energy model, in line with the challenges facing the energy sector.

Digital transformation plan: accelerator of the strategic plan

Enagás has a digital transformation plan underway, with people as its centre. This plan allows the company to accelerate its sustainability roadmap and strategic plan.

The company is promoting a more digitalised, agile, and flexible energy model, from all areas of its activity, with a prominent role for the cybersecurity plan for business resilience and continuity, and for artificial intelligence as a disruptive and transformative element of processes and operations.

Read the article online at: https://www.globalhydrogenreview.com/hydrogen/19022025/enags-will-invest-4035-billion-by-2030-with-green-hydrogen-as-the-pillar-of-its-growth/