The report highlights the pivotal role of France in transforming Spain's energy landscape, underlined by the Barcelona Treaty, which elevated Franco-Spanish relations to their highest level. The treaty aims to foster collaboration, particularly after the three countries (Spain, Portugal, and France) agreed on implementing the H2Med project—a first renewable hydrogen corridor in the EU capable of transporting up to 10% of EU's hydrogen consumption by 2030. This could potentially position the Iberian Peninsula as a key European energy hub.
For Spain to export hydrogen effectively, it needs to collaborate closely with France, which must adapt or build connections from Marseille to Central Europe for hydrogen transportation. However, the economic viability of this green hydrogen project remains uncertain, with significant questions around regulation, governance, and alignment with other geopolitical actors' interests.
To ensure the success of the H2Med project, several critical components are needed: the Iberian Peninsula must generate sufficient green hydrogen to meet its domestic demand and produce an excess for export. Spain has a promising opportunity through its robust renewable energy sector, competitive economy in green energy generation, and public support, including European Next Generation funds. Collaboration with France is crucial for economically feasible green hydrogen exportation.
Moreover, the report stresses that green hydrogen should be economically viable to compete with other energy sources. In the short term, hydrogen will primarily be consumed close to production sites, necessitating cost reduction for green hydrogen production until export becomes financially viable. The cost of green hydrogen production must decrease compared to fossil fuels and carbon, while China's dominance in green hydrogen production is a concern.
To achieve this, Spain should focus on developing its value chains and cooperate with like-minded nations while considering European strategic interests. The H2Med project could enhance the Iberian Peninsula's energy autonomy if it is open to other countries like Eastern Europe. It would also impact North Africa's relations, where countries like Morocco and Algeria are well-positioned to produce green hydrogen.
In conclusion, Spain's energy transformation hinges on a successful H2Med project, which requires overcoming significant challenges such as economic viability, regulatory frameworks, and geopolitical considerations. Spain must also leverage its regional partnerships and the support from public and European funds to secure its place in the evolving global hydrogen market.
