Spain to become the green hydrogen powerhouse of Europe

The International Association Cedigaz has just released its Hydrogen Market Review: “Spain to become the green hydrogen powerhouse of Europe”, which assesses market developments, policies and prospects of the hydrogen industry in Spain. The report also provides data on Spain’s green hydrogen production projects.

 Spain wants to become the European renewable hydrogen hub of Europe. The country holds key assets to realize this ambition, with its abundant sun and wind resources, allowing the cheapest cost of renewable hydrogen in Europe; its vast area available to build renewable power capacity; its well-developed natural gas infrastructure; its ports on key shipping routes; and its industrial asset base and capabilities to adapt a new economy.

Spain adopted a hydrogen roadmap in 2020 to facilitate the deployment and use of hydrogen as a key energy vector for the future. The strategy focuses on renewable hydrogen exclusively. It set the goal of installing 4 GW of electrolysis capacity by 2030, a goal that the government has proposed to increase to 11 GW by 2030 in its draft update of the National Integrated Energy and Climate Plan of June 2023. The focus of the roadmap was mainly on the creation of hydrogen clusters across the country to: i) decarbonise hard-to-abate industries and heavy mobility; ii) stimulate domestic economic activity and revitalize local economies in the Just Transition regions; and iii) become a technological leader in the value chain. Since the Russian invasion of Ukraine and the EU’s ambitious hydrogen vision, the external orientation of Spain’s hydrogen policy has become increasingly prominent. Spain has strengthened its decarbonisation commitment and significantly increased the contribution of renewables, including renewable hydrogen.

Quarterly report – Q2 2023 – International natural gas prices

In the second quarter of 2023, European and Asian spot prices continued to fall sharply in a context of weak demand and high inventories in the three major consumer markets (Europe, Asia and North America). In the second quarter of 2023, European and Asian spot prices were on average 60% lower than in the second quarter of 2022 but remained historically high. Improving gas supply-demand balances have resulted in a relatively abundant supply of LNG on the international market and high stock levels, particularly in Europe. As a result, the markets are not currently anticipating any major supply tensions in the short term. However, this view may change depending on weather conditions, which remain the main factor of risk and uncertainty.

Russian gas in Europe: Yesterday, Today, Tomorrow.

An in-depth analysis of recent developments and prospects in Europe-Russia gas relations

 With quality information from Russia getting increasingly scarce, the Russian natural gas market has become more and more of a black box. In its latest report “Russian gas in Europe: Yesterday, Today, Tomorrow. An in-depth analysis of recent developments and prospects in Europe-Russia gas relations”, CEDIGAZ tracks the unprecedented changes between glorious “yesterday” (2018-2021), gloomy “today” (2022-Q1 2023) of Russian gas (both pipeline and LNG) in Europe, including the evolution of the European countries’ dependence on Russian gas, using data still available. The report also discusses possible futures for Russian gas in Europe after 2023 (“tomorrow”) – given new inputs, including selected pipeline export routes limitations, the Turkish natural gas hub initiative, and Russian LNG project developments.