Madrileña Red de Gas continues to advance its commitment to the decarbonisation of the energy sector by leveraging its existing infrastructure to integrate green gases such as biomethane and green hydrogen. In 2024, the company signed the first connection contract for a production plant for the injection of biomethane into its network and has continued to drive several green energy projects, including the Inspira Madrid and Pryconsa projects.
Additionally, the company remains steadfast in its commitments under the Oil & Gas Methane Partnership (OGMP 2.0) initiative of the United Nations Environment Program (UNEP) for methane emissions reduction, achieving a significant carbon footprint reduction exceeding 15% compared to the previous financial year. These advances position Madrileña Red de Gas as a key player in the energy transition and in meeting the European Net Zero targets.
5.1Natural Gas for Vehicles (NGV)
The year 2024 has continued to be a significant one for the use of natural gas as a vehicle fuel. According to data from the Gasnam-Neutral Transport Association, natural gas consumption in mobility increased by 38%, with the majority of this growth driven by maritime transport.
Regarding land transport, natural gas consumption has stabilised, mainly due to a lack of vehicle models, especially passenger cars for private use. However, consumption in professional fleets has remained stable, with truck sales increasing by 4%.
It is important to highlight that approximately 40% of natural gas vehicles sold in Spain are sold in Madrid.
Given the environmental benefits and efficiency of NGV, there is a clear commitment from municipalities to reduce their carbon footprint. Many are opting for CNG vehicles for street cleaning and waste collection, thereby contributing to the reduction of CO2 and NOX emissions.
Approximately 40% of natural gas vehicles sold in Spain are sold in Madrid
An example of this is the municipality of Torrejón de Ardoz, where a CNG refuelling station was inaugurated in the Las Monjas Industrial Park. This station, equipped with eight filling points, supplies vehicles used for city cleaning. Its construction was funded by the company that was awarded the cleaning contract, with the aim of improving and modernising the service provided.
Similarly, Valoriza Servicios Medioambientales has built another CNG station in Majadahonda to comply with the terms of the contract signed with the Local Council and to continue improving the service in that town. This station began operating at the end of 2024.
Thus, there are now in total 22 NGV stations —thirteen public and nine private— supplied from Madrileña Red de Gas networks.
5.2 Environment
During 2024, the core focus of Madrileña Red de Gas’s environmental performance has been on maintaining the processes that underpin its environmental management system. This has enabled the company to retain ISO 14001 certification, collect environmental management indicators, verify its carbon footprint report, engage in dialogue with stakeholders, and continue its membership in the Oil and Gas Methane Partnership (OGMP 2.0), as well as achieve the «Gold Standard Pathway» certification.
Furthermore, for the third consecutive year, a third-party verification of the 2023 Carbon Footprint Calculation (Scopes 1, 2, and 3) was conducted in accordance with ISO 14064 standard, alongside verification of the Sustainability Report following GRI standards, which encompass extensive environmental reporting requirements.
Madrileña Red de Gas has succeeded in reducing its total carbon footprint by more than 15% compared to the previous year (Figure 56), a significant achievement that reinforces its commitment to the European Union’s climate targets and actively contributes to the fulfilment of the «Fit for 55» plan for 2030 and the «Net Zero» climate neutrality target for 2050.
On the other hand, as in previous years, the identification and evaluation of compliance with applicable environmental legislation requirements have been managed through a dedicated application. Additionally, progress has continued steadily with the reporting of contaminated soil from dismantled LPG plants. In this regard, many property owners have already been notified of the conclusions of the administrative resolutions related to this process.
Since 2023, Madrileña Red de Gas has been a member of the OGMP 2.0 initiative, the United Nations Environment Programme (UNEP) for the mitigation and reporting of methane emissions in the oil and gas industry
OGMP 2.0 Initiative
Since 2023, Madrileña Red de Gas has been a member of the OGMP 2.0 initiative, the United Nations Environment Programme (UNEP) for the mitigation and reporting of methane emissions in the oil and gas industry. This initiative aims to establish a new global standard for measuring methane emissions, thereby facilitating their monitoring and enabling the development of reduction plans, while ensuring transparency.
Furthermore, the OGMP 2.0 project will serve as a framework for the European Commission to develop a legislative proposal on the mandatory measurement, reporting, and verification of all methane emissions in the energy sector. To date, more than 150 companies with assets across five continents have joined the alliance, representing 37% of global oil and gas production.
During 2024, in response to the requirements of European Union Regulation 2024-1787 on methane emissions reduction and the commitments made to the OGMP organisation, Madrileña Red de Gas initiated an evaluation of technologies for detecting and quantifying methane emissions in the distribution network. Initially, a selection of suppliers was conducted, and a comparative analysis was prepared with the aim of carrying out two pilot tests to monitor the network using vehicle-based technology.
Use of hydrogen at Madrileña Red de Gas offices
With the aim of demonstrating the use of hydrogen as an energy source for heating and domestic hot water (DHW), in 2023 Madrileña Red de Gas signed an agreement with the boiler manufacturer Vaillant to install a prototype hydrogen-ready boiler.
This unit, the same size as its commercial natural gas equivalent, is capable of producing hot water from hydrogen. The boiler was installed in a room designated as a rest area for employees, providing both heating and hot water to the space. It represents the first hydrogen boiler in operation in the Community of Madrid and the second in Spain.
The installation assembly was carried out as if it were a natural gas boiler, in accordance with current legislation and using the same materials and installation procedures.
The boiler uses 100% hydrogen supplied from an external storage, where, after a pressure regulation stage, the hydrogen reaches the boiler at a pressure of 22 mbar. This demonstrates that existing installations are capable of transporting hydrogen, opening the door to decarbonising heating through the use of renewable hydrogen. Although it is not yet able to use hydrogen and natural gas mixtures, the manufacturer is working towards that capability.
Throughout this financial year, the facility has received numerous external visits, including technical staff from the Ministry for the Ecological Transition and the Demographic Challenge (MITECO), representatives from the CNMC, associations such as CONAIF and AGREMIA, as well as various housing developers and installers
Inspira Madrid Project
Obtaining European Funding
During 2023, efforts were focused on submitting the Inspira Madrid project to the Connecting Europe Facility (CEF) funding call, specifically related to the transport sector. This mechanism is a financial instrument created by the European Commission to develop the Trans-European Network, with a focus on alternative fuels infrastructure (AFIF).
After evaluating the proposals, the European Climate, Infrastructure and Environment Agency (CINEA) selected 42 projects for the 2023 call, with a proposed funding amount of €424 million. In this call, the European Union’s CEF AFIF will support the construction of 4,200 electric charging points and 48 hydrogen refuelling stations. Of the four Spanish projects selected by CEF AFIF, Inspira Madrid was the only one dedicated to hydrogen generation and refuelling infrastructure in Spain.
Based on compliance with the criteria of priority and urgency, maturity, quality and impact, and scalability, Inspira Madrid has secured up to €7.3 million in funding from the European CEF Transport program. Alongside the approval of additional financing from the Instituto de Crédito Oficial (ICO, Official Credit Institute), the grant agreement was signed mid-year with the European Climate, Infrastructure and Environment Executive Agency (CINEA), confirming the award of the aid.
Current project status
The support from the European Union through the granting of CEF funding has propelled the project into new development phases. Together with Sacyr Proyecta, the project has initiated the preparation of the Advanced Basic Engineering prior to the construction phase. In parallel, work is ongoing with the Community of Madrid to advance permits and obtain environmental authorisation for the hydrogen production plant.
With the strategic advice of PwC, the search for hydrogen consumers for mobility in the Community of Madrid is reflected in the numerous contacts and meetings held by the project development team. The correct location of hydrogen refuelling stations is crucial to the project’s success, aiming to align demand with sites that are easily accessible from major transport routes.
It is also worth highlighting the close collaboration between Inspira Madrid and Toyota through agreements aimed at facilitating access to hydrogen vehicles, specifically the Toyota Mirai. The agreement reached will provide a promotional discount on the vehicle’s price, bringing hydrogen mobility closer to a larger number of users during the project’s initial stage.
Pryconsa Project
The construction of the housing development, where the hydrogen-ready boiler will be installed, began in 2024. The final equipment to be installed will be a central boiler from the Bosch brand.
This boiler, the first of its kind installed in Spain, can be adapted to operate with different blends of hydrogen and natural gas. Starting with 100% natural gas, the boiler has the capacity to modulate and operate with various mixtures of both gases, including the capability to use 100% hydrogen and 100% biomethane.
Connected to the distribution network, the boiler will begin operation using natural gas and, being enabled for hydrogen use, will have the capability to utilize green hydrogen when required.
New Deal Studies
Spanish natural gas distribution companies have been working on the development of a decarbonisation strategy as an alternative to the current high-electrification approach. To this end, they have been advised by PwC.
The scenario developed, called the «New Deal», outlines a pathway to decarbonise Spain driven by green gases, in contrast to current proposals, shaped by an energy policy focused almost exclusively on electrification. The New Deal aims to achieve a balanced development of both electrification and green gases, maximising the use of existing infrastructure. As a result, thermal uses can be decarbonised 11% faster over the long term, with cost efficiencies of €73 billion for the end user and total investments of €172 billion compared to the current baseline scenario.
Short-term conclusions (2035)
The technological availability of green gases provides cost efficiency, certainty, and speed to the decarbonisation process.
The New Deal results in a reduction of €22 billion (32%) in additional costs, driven primarily by the residential sector. The tertiary and industrial sectors also show significant savings: €1.3 billion (33%) and €2.3 billion (14%), respectively. At the same time, investment targets are eased, with less complex requirements and a lower volume of renewable energy deployment.
The greater development of green gases accelerates by 3.4% the reduction of cumulative emissions until 2035. The New Deal emerges as the most consistent and balanced option for short-term decarbonisation of the economy. It offers flexibility to the end user and enables a safer, faster, and more economically efficient decarbonisation process.
Long-term conclusions (2050)
The results of the study indicate that the New Deal is the most cost-efficient and emissions-reducing option in the long term. It enables a reduction of €73 billion (56%) in additional costs, making it the most competitive option for the residential and industrial sectors, while matching electrification in the tertiary sector.
Moreover, this scenario allows for a faster decarbonisation process, achieving an 11.4% reduction in cumulative emissions by 2050.
Biomethane
Procedure for connecting biomethane plants
In 2024, the CNMC Resolution dated 19 April 2024 was published, establishing the procedure for managing the connection of biomethane generation plants to the transmission or distribution network.
This procedure aims to regulate the connections of biomethane generation plants to the natural gas transmission and distribution network. In compliance with this resolution, during 2024 a tool to manage these connection requests was launched on the Madrileña Red de Gas website. In the «New Energies» section, users can access information about biomethane and hydrogen, request information on the injection of green gases into the distribution network, and dispel biased or preconceived ideas surrounding hydrogen and biomethane, among other content.
Signing of the first connection contract on the Madrileña Red de Gas network
In 2024, the first connection contract was signed for a production plant to inject biomethane into the Madrileña Red de Gas network . The biomethane will be produced at a landfill site, where the biogas generated will undergo an upgrading process and the resulting biomethane will be injected into the network.
This milestone represents a first step in the company’s distribution network decarbonisation, allowing biomethane to be directly supplied to current natural gas consumers. Injection of this renewable gas into the Madrileña Red de Gas network is expected to begin in 2026.
Collaboration with Francisco de Vitoria University
Within the framework of the collaboration agreement established with the Universidad Francisco de Vitoria (UFV), aimed at developing green hydrogen technology from research to implementation and development, various actions have been carried out.
At the end of the year, a conference was organised for UFV engineering students. Addressing the challenges in distribution and supply for the energy transition, the event allowed future engineers to learn about the obstacles faced in hydrogen project development and about the current situation in the sector, and to ask questions and express concerns about this energy source.
The strong participation and positive reception demonstrate the interest of future engineers in green hydrogen, reinforcing the activities conducted under the collaboration agreement.
Additionally, this agreement has enabled two final-year engineering students from UFV to join the Expansion team at Madrileña Red de Gas as interns, allowing them to have their first contact with biomethane and hydrogen projects.