French gas grid operator Natran, a subsidiary of Engie, has formed a joint venture with French storage operator Terega and Spain's Enagas to develop a crucial cross-border hydrogen pipeline. 

Announced on Thursday, July 3, the initiative marks a significant step in Europe's ambitions to transition towards cleaner energy sources over the coming years. 

The joint venture will oversee the Barcelona-to-Marseille underwater pipeline, dubbed Barmar, a core component of the broader H2Med project.

Estimated to cost 2.5 billion euros ($2.93 billion), the project aims to build a massive hydrogen pipeline network, connecting Portugal, Spain, France, and Germany by 2030. 

With climate change being a global concern, the European Union is championing hydrogen as a key player in displacing natural gas consumption, aiming to leverage its zero-carbon emissions upon combustion.

The H2Med project is projected to transport 2 million metric tons of hydrogen annually, produced from renewable electricity to industrial consumers across Europe. 

This capacity is estimated to meet approximately 10% of the European Union's anticipated hydrogen consumption by 2030, highlighting the project's strategic importance.

In the newly formed venture for Barmar, Enagas will hold a 50% stake, Natran will have 33.3%, and Terega will hold 16.7%. 

Last month, the European Union demonstrated its commitment to the project by approving funding to cover 50% of the development costs. 

Teresa Ribera, the  Executive Vice-President for a Clean, Just and Competitive Transition at the European Commission, also met with the five CEOs of the H2med consortium to discuss the project's progress.  

While progress is steady, Enagas CEO Arturo Gonzalo indicated earlier this year that a final investment decision on H2Med is not expected before 2028.