Plans to build a 2,600-km (1,615-mi) hydrogen (H₂) network in Spain are advancing ahead of schedule and the infrastructure is on track to start operations in 2030, the chief of Spanish gas grid operator Enagas said on Friday.

The network will be part of the planned trans-European H2Med corridor aimed at connecting the Iberian region with northwest Europe.

The company plans to take a final investment decision in 2027 and start construction the following year, Chief Executive Arturo Gonzalo said at an event to launch a public consultation process related to the project.

The Spanish network will include new pipelines as well as some repurposed gas assets, he said, for an overall investment of some €2.6 B ($2.95 B).

"The project is starting to become a reality, it is progressing at a very good pace, even faster than expected," he said. "Today, we are setting in motion a key milestone to make a H₂ infrastructure a reality in Spain."

Enagas is among the staunchest supporters of a green H₂ industry, which uses renewable energy for its production, and still faces high costs, heavily depends on subsidies and is struggling to find buyers for its production.

With Spanish gas demand falling, the company is diversifying into managing a network of H₂ infrastructure. It is also targeting ammonia and carbon dioxide (CO₂) capture. To fund its plans, it has sold assets, reduced dividends and cut debt.

The plans are in line with Spain's ambitious green agenda. Thanks to abundant solar and wind power, the country is vying to be a European leader in green H₂. It set a 2030 target of 12 gigawatts for electrolyzers used to make green H₂.

($1 = €0.8811)