Algeria is getting axed from an ambitious European hydrogen plan: Spain is now partnering with Italy and Morocco for a European-wide hydrogen transport infrastructure that will exclude Algeria on the back of diplomatic tensions with Madrid, Spanish media outlet El Periódico de la Energía reported last week. According to the outlet, the European Hydrogen Backbone (EHB) initiative has submitted an updated version of its vision for the infrastructure map where hydrogen is set to be transported through the European Union.

What we know: An updated version of the plans reveals that Spain will no longer connect the Medgaz, a submarine natural gas pipeline between Algeria and Spain, to import or export green hydrogen in 2040 as outlined in previous updates. Instead, it plans to shift focus to H2Med, a subsea hydrogen pipeline project that is being jointly developed by France, Spain, and Portugal by 2030. Recently, Germany said it plans to join the planned green hydrogen corridor, which — once operational in 2030 — will supply an estimated 2 mn metric tons of the green fuel (c.10% of the EU’s hydrogen demand), according to officials. The corridor, which was first announced in October, is expected to cost some USD 2.6 bn.

And there’s more: Spain is also seeking a hydrogen interconnector project with Italy through a 792-kilometer long pipeline connecting Barcelona and Leghom, according to El Periódico de la Energía. The infrastructure is expected to be in place in 2040.

Some things are staying the same: Despite Algeria being axed from the Spanish plans, the connection to the Maghreb-Europe gas pipeline, which carries natural gas from Algeria to Spain via Morocco, will remain in place. The possibility of purchasing hydrogen from Morocco and transporting it to Europe through the existing pipeline is also being considered.

REMEMBER– The Maghreb-Europe pipeline was shut down in the fourth quarter of 2021 on the back of a diplomatic row between Algeria and Morocco that was exacerbated by Madrid's stance on the disputed territory of Western Sahara. However, the pipeline was reopened in June 2022 in the opposite direction with natural gas flowing from Spain towards Morocco.

IN OTHER EU NEWS- REPowerEU is getting more funding: The European Investment Bank’s board of directors has approved increasing funding for the bloc’s REPowerEU strategy — which aims to slash EU fossil fuel imports — from EUR 30 bn to EUR 45 bn, according to a statement released last week. The funds, which are expected to be mobilized by 2027, will be channeled toward funding solar energy projects, wind power ventures, green hydrogen-related investments, including in electrolyzer technologies, battery energy storage systems, biofuel generation, carbon capture and storage projects, and smart grid technology integration, the statement notes. The increase in capital is expected to mobilize EUR 150 bn in additional investments for the targeted sectors under REPower EU’s umbrella, the bank notes.

And an Morocco-EU green hydrogen interconnector stands to benefit: Last month, Moroccan hydrogen developer Gaia Future Energy signed a partnership agreement with Spanish hydrogen provider HyDeal that will see them form a JV — HyDeal Africa — to transport green hydrogen from Gaia Future Energy projects in Morocco and Mauritania to Europe in a bid to meet EU energy demands. The project, which aims to facilitate the transport of 1 mn tons of green hydrogen from Morocco to Europe by 2030 and 5 mn tons from Mauritania to the bloc by 2035, falls under the umbrella of Europe’s RepowerEU plan of importing 10 mn gallons of green hydrogen by the end of the decade.