The five network operators Enagás, NaTran, OGE, REN, and Teréga, involved in the H2med hydrogen corridor, have published the results of their market survey. On February 10, the network operators announced in a joint webinar that almost 170 companies have expressed interest in the planned hydrogen corridor. The operators see the results of their market survey as confirmation of the importance of the South-North Pipeline, which is set to connect Portugal, Spain, France, and Germany from the early 2030s.
The response to the market survey shows: Interest in the hydrogen pipeline is high. Therefore, the H2med Alliance, founded in December 2024, is to be expanded. The alliance of network operators REN, Enagás, Teréga, NaTran, and OGE, along with government representatives and companies, aims to support the corridor through regular meetings in the long term.
An important task is to harmonize the implementation of the hydrogen action package in the participating member states. The process is intended to help reduce the risk of infrastructure projects and provide planning security for the industry.
Moreover, the operators want to further develop a digital matchmaking platform. It is intended to enable the registration of new projects along the pipeline and thus facilitate further market development and the establishment of new business relationships.
Two Million Tons of Hydrogen Exports from Portugal
The approximately 2.5 billion euro pipeline is set to transport up to two million tons of hydrogen annually from Portugal via Spain and France to Germany from 2030 – about ten percent of the estimated total European demand. The European Union has already approved funding for individual sections.
According to the participating transmission system operators (TSOs), Portugal plans hydrogen exports of 0.4 million tons annually from 2030. Spain wants to be able to supply 1.22 million tons in the same period. The full BarMar capacity is to be reached in 2032.
For 2035, Spain forecasts a total production of 4.6 million tons, of which 2.6 million tons are intended for domestic consumption. The market survey also shows interest from North African countries in transporting their hydrogen production to Europe via this route from 2040.
Spain could become an important hydrogen exporter thanks to its favorable conditions for renewable energies. Solar power production costs are around one cent per kWh, which makes green hydrogen production particularly economical. The Spanish government is therefore investing several billion euros in developing the hydrogen economy. In its updated hydrogen strategy from September 2024, the Spanish government plans to build electrolysis capacities of 12 GW by 2030.
Demand from Western Germany to Consume Half of H2med Capacity
The press release from the participating TSOs also states that France's hydrogen demand could rise to 0.9 million tons annually by 2050. The main consumers are likely to be the chemical industry and the production of e-fuels for the mobility sector. Part of the French production is to be transported to Germany via the HY-FEN pipeline section.
In Western Germany, demand is expected to consume half of the H2med capacity by 2035. The Federal Ministry of Economic Affairs anticipates a total German demand of 17 to 21 million tons annually by 2040. According to the federal government, national hydrogen demand will already be up to 110 TWh in 2030. Only a small part can be covered by domestic production; Germany will need to import between 50 and 80 percent of its green hydrogen needs.
