Gas grid operator Enagas has received a preliminary approval to start developing the Spanish section of a planned trans-European hydrogen pipeline and related infrastructure projects.

The Spanish government said on Tuesday that Enagas could move forward with hydrogen projects deemed of European interest and part of the H2MED corridor, including an interconnection with Portugal, an underwater pipeline between Spain and France known as “BarMar”, and hydrogen storage facilities.

The government said its approval is provisional at this stage but did not specify what further steps might need to happen before work starts.

Through this project Enagas, in which the Spanish state owns a 5% stake, will expand its role as a natural gas grid operator to managing a network of hydrogen infrastructure.

Moreover, Enagas is cooperating with French, German and Portuguese peers to develop the project. It expects net investment of around €3.2 billion ($3.5 billion) through 2030 to develop its hydrogen projects, including the H2MED corridor.

Notably, the flagship H2MED hydrogen pipeline project will connect the Iberian Peninsula to France and then to Central Europe by 2030