BarMar: a pipeline between Barcelona and Marseille

On 20 October 2022 Spain, France and Portugal agreed to replace the MidCat gas pipeline project with a submarine link between Barcelona and Marseille, designed to carry green hydrogen. It was later integrated into the H2Med corridor. The announcement left behind a long debate about how to improve energy links between the Iberian peninsula and the rest of Europe. The technical, cost and timetable details would be settled over the following years.

In the middle of an energy crisis, the news had an immediate reading: Europe was seeking to reduce its dependence on Russian gas and strengthen interconnections. But it also had a longer-term reading, related to the energy transition. For a city like Barcelona, the project could mean new industrial and knowledge opportunities, and for energy-related companies, an indicator of where investment may go in coming years. Energy infrastructure is not built in months, and its profitability depends on political and market decisions that may change.

From gas to hydrogen

The MidCat pipeline sought to connect the Iberian peninsula better with the rest of Europe, but it was replaced by a different project: a submarine link designed for green hydrogen. Green hydrogen is produced with renewable energy, and is considered a possible piece in decarbonising industry.

It is a technology under development, with challenges of cost, production, transport and demand that are yet to be solved. That a specific infrastructure is planned for its transport indicates a political and strategic bet, but does not guarantee that the market will develop at the expected pace. It is therefore wise to follow the project with interest but without taking for granted when or how it will materialise. It is worth distinguishing green hydrogen, produced with renewables, from other types of hydrogen whose carbon footprint is different.

Barcelona on the energy map

Barcelona was placed on the European energy map of the future. That the city is the starting point of an infrastructure of this kind can attract investment, industrial activity and knowledge, and also strengthen the Iberian peninsula’s role in Europe’s security of supply.

Energy infrastructure usually generates activity around it: engineering and construction firms, equipment suppliers, research centres, service companies and specialised training. The effect on the territory can be significant, though it takes years to materialise and depends on investment decisions, permits and the evolution of demand for hydrogen. Large-scale projects also generate debate about their environmental impact, cost and financing, and it is reasonable to follow them with a critical eye.

Following major projects closely

Major infrastructure projects take years, but those who follow them closely find opportunities before anyone else. Engineering, construction, transport or industrial services companies should follow their progress, the requirements and the possible calls for tender, so as to be able to take part when the time comes.

Preparing to take part in a project of this scale takes time: certifications, references, financial capacity, alliances with other companies and knowledge of procurement processes. Those who start before tenders are published arrive in a better position. An adviser can help identify the requirements, the usual timelines and the sources of financing or aid available. Without committing resources prematurely, time can be spent getting to know the sector, talking to possible partners and studying similar cases from other countries.

Today’s infrastructure marks where tomorrow’s opportunities will be.

This article is general information. It is not legal, tax or investment advice, and it does not take anyone’s particular circumstances into account.