European Hydrogen Project Exposes France’s Hypocrisy Towards Algeria!

A European project to connect Spain and France with hydrogen pipelines from future production units in the Iberian Peninsula reveals blatant French hypocrisy in its dealings with Algerian gas. France has opposed it with a European “veto” for decades to prevent its passage from Spain to its territory through an interconnection project, while things are moving quickly towards the implementation of the hydrogen interconnection initiative.

In this context, the “H2med” project saw a major step last week towards connecting hydrogen networks between Portugal, Spain, and France, as part of the first stages of connection with Germany and Central Europe, in cooperation with the project partners. Geophysical and engineering studies for the “BarMar” interconnection project between Barcelona, Spain, and Marseille, France, have been successfully completed, according to the initiative’s official website.

Experts confirmed that the subsea route is technically feasible, making the hydrogen pipeline between Spain and France on the verge of becoming a tangible reality.

Significant progress has also been made in the “CelZa” interconnection project with Portugal, where the public participation program has already started in Spain. Information points are expected to be set up in 21 municipalities in the Zamora region, and interactive workshops will be organized with the participation of stakeholders and citizens to explain the project details clearly and comprehensively.

These new developments give the project partners the ability to adhere to the planned timeline for the commercial operation of the “BarMar and CelZa” interconnection projects, specifically in 2032.

This project has received full political support from all participating member states in this corridor, in addition to the support of the European Commission, which classified “H2med” as a Project of Common Interest, within the future energy highways.

Furthermore, funding agreements have been signed with the European Climate, Infrastructure and Environment Executive Agency (CINEA) to support the “BarMar and CelZa” projects, in addition to the establishment of the “BarMar” company last July to develop the connection between Barcelona and Marseille.

While France is rapidly supporting the “H2med” hydrogen interconnection project with Spain at the European Commission level and providing political and financial cover for it, Paris continues to reject any structural connection for Algerian gas across the Pyrenees. This rejection has deprived Algeria of a strategic gateway to France and Europe, despite being the primary gas supplier in the south of the continent.

The French energy regulatory authority and its Spanish counterpart announced in early 2019 the definitive abandonment of the project to connect the two countries with a gas pipeline crossing the Pyrenees. The decision came through a joint veto, but with clear insistence from the French side.

The French energy regulatory authority, known as “CRE,” stated at the time that it completely rejected investment in the gas pipeline interconnection project between France and Spain, known as “STEP,” proposed by the French company “Teréga,” specialized in gas transmission and storage facilities, and the Spanish company “Enagás,” a subsidiary of the Italian company Snam, also specialized in gas transmission and storage facilities.

The document stated that both parties agreed that this joint project, in its current configuration and capacity, as presented by the gas transmission system operators in both countries, does not meet market needs and has not yet reached sufficient maturity.

The French and Spanish parties justified that the gas market showed no commercial interest in injecting new capacities through interconnection, which is confirmed by consultation processes carried out in 2017 with various parties in both countries.

Both parties considered the project cost to be high compared to European standards, estimated at 442 million euros, with 290 million borne by the French company Teréga and 152 million by the Spanish company Enagás, a subsidiary of the Italian Snam.

The document from the energy regulatory authorities in France and Spain considered that the project would be profitable in two scenarios, both of which are exceptional: first, if LNG prices rise in the international market, and second, if gas supplies from Algeria decrease and decline.

Upon careful examination of the document, it becomes clear that the rejection of this project was more insistent from the French side, given the financial cost of the project that “Teréga” would have borne, estimated at 229 million euros. Additionally, the focus on the project being profitable only if LNG prices rose or Algerian gas supplies declined indicates that the benefit would be limited to Spain and Portugal.

It is worth noting that major European energy operators, such as Spain’s “Enagás,” Germany’s “NaTran,” Portugal’s “REN,” France’s “Teréga,” and Germany’s “OGE,” are participating in the “H2med” project.