CEO Arturo Gonzalo © Enagás
CEO Arturo Gonzalo © Enagás
Enagás has sold its stake in a US business for $1.1bn to finance its green hydrogen investments through to 2030.
The Spanish gas network operator said it reached an agreement to sell its 30.2% shareholding in Kansas-based Tallgrass Energy to Blackstone Infrastructure Partners for $1.1bn.
With the transaction expected to close at the end of this month, it comes as part of an “asset rotation process” announced by Enagás in its 2022-2030 strategic plan which prioritised decarbonising and securing energy supply in Spain and Europe.
The firm said the sale “guarantees the execution” of its renewable hydrogen infrastructure investment plans.
In the plan, the company set out €235m ($254m) of hydrogen investments between 2022 and 2026, and a further €455m ($492m) between 2027 and 2030 for its core and adjacent businesses.
Under its Enagás Renovable brand, it planned to invest a combined €205m ($223m) into green hydrogen production from 2022 to 2030.
Enagás has said the Tallgrass sale will generate an accounting loss of around €360m ($389m) in its 2024 income statement but will have a “very positive impact” on its cash flow statement.
Last December Enagás was approved to act as a “provisional manager” of the European Hydrogen Backbone, which plans to link up hydrogen gas networks across the European Union.
Alongside GRTgaz, Teréga, REN and OGE, the firm is developing the €2.5bn ($2.7bn) H2Med pipeline project, designed to carry two million tonnes of hydrogen per year from Spain, and Portugal, to France and Germany.
Read more: Germany joins H2Med under new Franco-German hydrogen commitments
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