Clean hydrogen platform Hy24 has taken a stake in Enagas Renovable to accelerate the development of renewables-to-gas projects in Spain.
Enagas Renovable, a subsidiary of Spanish gas grid operator Enagas, has a portfolio of more than 50 projects throughout Spain in the fields of renewable gases and decarbonisation.
It is one of the largest European platforms for renewable-to-gas projects.
The most advanced projects represent more than 750MW of electrolysis capacity with a target commercial operation date (COD) between 2023 and 2026, equivalent to around 20% of the Spanish hydrogen objectives in terms of installed capacity by 2030.
The platform is expected to act as an aggregator for major Spanish green hydrogen projects.
The investment by Hy24, a joint venture between Ardian and FiveT Hydrogen, will be executed through its Clean H2 Infra Fund via a capital increase in Enagas Renovable, giving it a 30% stake, while Enagas will retain 70%.
Spain combines competitive renewable resources with attractive market opportunities for hydrogen, including diverse industrial applications, Hy24 stated.
Enagas president Antonio Llarden said: “This agreement with Hy24 is a milestone on the path that Enagas started in 2017 to drive and develop initiatives based on renewable gases.
“With this operation, Enagas adds hydrogen and biomethane experience and know how, as well as energy infrastructure management to Ardian’s experience in asset management and FiveT Hydrogen’s knowledge of the hydrogen value chain.
“This agreement will allow us to start up joint hydrogen projects to contribute to a just energy transition and to decarbonise future energy.”
Pierre-Etienne Franc, CEO of Hy24, said: “We are very proud of this strategic partnership with Enagás. We expect this joint venture to accelerate the realisation of large green power-to-hydrogen projects in Spain to help decarbonise both industry and transport sectors.
“The quality of the Enagas Renovable’s team, the pipeline of projects and the unmatched position of Enagas in the energy ecosystem in Spain and other Spanish speaking territories are strong levers for sustainable value creation at the heart of the global energy transition.”
All Enagas Renovable’s projects are in line with the Hydrogen and Biogas Road Maps for Spain. The company already has several test facilities including Green Hysland Mallorca, the first Hydrogen Valley in Spain with electrolysers that will be in operation in 2022.
Hy24 was created by Ardian and FiveT Hydrogen to manage the Clean H2 Infra Fund, the world’s largest fund exclusively dedicated to clean hydrogen infrastructure solutions.
The Clean H2 Infra Fund has already raised €1bn of allocations and expects to leverage 10 to 15 times more investment in the hydrogen industry via partnerships like the one with Enagas Renovable.
This deal follows the first investment made earlier this month in participating in the €200m fund raise of the German company Hy2gen.