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Portugal Green Hydrogen Hub

Portugal Business News -
Portugal Green Hydrogen Hub - Portugal Business News

Portugal is positioning itself as a Green Hydrogen Hub for the EU. Sines in Portugal is the new Hydrogen Valley, with Green Hydrogen expected to become a major pillar of economic growth.

Portugal’s Prime Minister stated that the country is an excellent location to produce Green Energy because water is easily accessible. He added that there was a 1 billion Euro investment to produce Green Hydrogen in Sines under the consortium MadoquaPower2X, with the availability of solar and wind power. The company will have a 500 Megawatt-capacity to produce Green Hydrogen which will be exported from the port of Sines. Danish fund manager and offshore wind developer “Copenhagen Infrastructure Partners” (CIP) have partnered with Madoqua Renewable and Dutch Power2X to build the €1bn project that will produce 50,000 tons of Green Hydrogen annually. The port of Sines, that is south of Lisbon, has the conditions for stocking and trans-shipping energy to the EU.

Another consortium of 13 companies and research partners was selected by the European Commission as part of the Green Deal to develop Green Hydrogen production of 100 MW in Sines, Portugal, through the GreenH2Atlantic project. The consortium includes EDP, Galp, ENGIE, Bondalti, Martifer, Vestas Wind Systems A/S, McPhy and Efacec. The project has a €30 million grant and construction is expected to start in 2023 with operation starting in 2025.

Portugal also just announced the creation of a Green Hydrogen production unit in Portalegre, that is north of Lisbon, with an investment of €16 million. The project, which is a partnership between Lightsource BP and Douro Gas, has a solar photovoltaic component. The plant is expected to be operational by the end of 2023, with a production capacity of 89 kilograms of hydrogen per hour. The plant location is due to its access to the high-pressure gas network.

Portugal’s Prime Minister added that 80% of the energy Portugal consumes will come from renewable energy by 2026 and this will be decisive for the trade balance.

Portugal is welcoming the Green Hydrogen Summit on 18-19 April 2023 in Lisbon, with a focus to achieving cost-competitive Green Hydrogen. The Summit will be attended by governments of several countries as well as industry experts and will facilitate networking with over 250 industry peers.

The Iberian Peninsula is strategic for connecting the EU and the existing natural gas pipeline can be used for Green Hydrogen. Portugal and Spain have the capacity to supply 30% of Europe’s natural gas requirements and are also expected to produce Green Hydrogen cheaper than in the rest of the EU. Energy giants Iberdrola and BP have already announced that they will partner to develop H2 production hubs in Portugal and Spain.

Renewable Hydrogen is in line with the EU Green Deal and the REPowerEU plan. Green Hydrogen will replace the use of natural gas, transitioning to carbon-neutral gases. The EU announcement for the creation of an EU bank for investment in hydrogen projects will lead to a united Europe for hydrogen distribution. The EU bank will invest in hydrogen projects that are budgeted at three billion Euros to target mass-production.

While Hydrogen is abundant on Earth in the form of water (H2O), the creation of pure hydrogen requires breaking molecular bonds. This is possible through electrolysis, where electricity is used to split H2O into hydrogen and oxygen. Green Hydrogen is when the energy used to power electrolysis comes from renewable sources like wind, water or solar energy. Hydrogen can also be used to store energy from renewable sources for later use, as it may be stored underground for as long as it is needed, just like natural gas.

While LNG is a transition fuel, it is not zero-emission, while Green Hydrogen complies with EU emission targets. This is why companies are shifting to hydrogen for achieving the Green Deal goals with 100% sustainable energy. The existing LNG infrastructure will help in the transition towards hydrogen distribution.

Portugal’s LNG Terminal in Sines lies on the Atlantic coast, south of Lisbon, and comprises port facilities for carriers, with storage tanks, processing facilities and a pipeline connecting to the Natural Gas Transport Network.

With the upcoming investments in Green Hydrogen in Portugal, Sines is the new Hydrogen Valley to keep a watch on for new advances in line with the EU Green Deal to Re-Power the EU.



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