Clean hydrogen investment fund Hy24 is to acquire a 30pc stake in the renewables arm of Spanish gas grid operator Enagas, which is investing €4bn ($4.53bn) in electrolyser capacity across 30 projects in Spain.

Hy24, a joint venture between French asset manager Ardian and hydrogen investment firm FiveT Hydrogen, takes the stake as part of a capital increase which see Enagas retain 70pc of the renewables unit, Enagas Renovable.

“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,” says Pierre-Etienne Franc, CEO of Hy24. “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”.

Enagas Renovable, formed in 2019, has a portfolio of more than 50 renewable gases and decarbonisation projects throughout Spain and is one of Europe’s largest developers of renewable-to-gas projects. It has more than 750MW of electrolysis capacity under development, which it aims to bring into commercial operation between 2023 and 2026, potentially contributing about 20pc of Spain’s 2030 installed capacity target.

€4bn – Enagas’ investment in electrolyser capacity

The company’s green hydrogen projects include industrial clusters and hydrogen corridors. It also investing around €300mn in biomethane.

“This agreement with Hy24 is a milestone on the path that Enagas started in 2017 to drive and develop initiatives based on renewable gases,” says Antonio Llarden, president of Enagas. “With this operation, Enagas adds hydrogen and biomethane experience and knowhow, as well as energy infrastructure management, to Ardian’s experience in asset management and FiveT Hydrogen’s knowledge of the hydrogen value chain.”

Enagas is a member of the European Hydrogen Backbone, an initiative by Europe’s major gas grid operators to create a hydrogen network through the conversion of existing pipelines and the construction of new ones.

Hy24 is transacting the deal via its €1bn Clean H2 Infra Fund. Earlier this month, the fund made its first investment when it participated in a €200mn funding round for German hydrogen project developer Hy2gen.

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Author: Stuart Penson