Spain and Portugal Step Into Europe's Hydrogen Spotlight

New BarMar link channels Iberian green hydrogen to Europe, reshaping energy flows and EU security

5 Jul 2025

Spain and Portugal are set to play a central role in Europe's energy transition after operators launched a joint venture to build the Barcelona-Marseille subsea hydrogen pipeline, known as BarMar.

The project, led by Spain's Enagás together with France's NaTran and Teréga, is the anchor of the H₂Med corridor and marks the first dedicated hydrogen link between the Iberian peninsula and the rest of Europe.

With extensive solar and wind resources, Spain and Portugal are among the region's most competitive producers of green hydrogen but have lacked an export channel. France, meanwhile, is seeking secure supplies to decarbonise heavy industry, making the partnership strategically significant.

The creation of a standalone company signals that the project is moving from political agreement to implementation. It has been designated by Brussels as a Project of Common Interest, making it eligible for EU funding. "Hydrogen transport capacity is the missing link in unlocking Iberia's renewable advantage," said Enagás chief executive Arturo Gonzalo at the signing.

The pipeline could shift the geography of Europe's hydrogen market, long focused on northern hubs around the North Sea. If delivered on schedule, it would cut costs, diversify sources and strengthen resilience against energy shocks.

Challenges remain. Subsea hydrogen transport requires stringent safety standards, while the cross-border project will need complex permits and clear rules on tariffs and regulation. Analysts also caution that demand from industry may take time to build.

Still, the initiative reflects growing alignment between national governments, corporate operators and EU policy. For supporters, BarMar is more than an energy project: it is evidence that Europe's hydrogen ambitions are moving from concept to construction, with Iberia at the forefront.