Portugal, a country committed to the development of green hydrogen

16 July, 2024

Spain’s neighbouring country is developing green hydrogen projects with the aim of moving forward in the decarbonisation of its economy

In recent years, Portugal has established policies aimed at the development of renewable energies in order to boost the energy transition and also to achieve the goals it has set for itself in the production of green hydrogen.

Thus, since 2020, Portugal has been developing a National Hydrogen Strategy with the aim of establishing the conditions for the creation of a hydrogen economy in Portugal and becoming an exporting country.

Portugal plans, among other things, to invest 7 billion euros in green hydrogen production projects and for the investment and production aid of up to 900 million euros. One of its 2030 targets is to double the planned capacity of electrolysers from 2.5 GW to 5.5 GW.

Other targets to be achieved by 2030 include the following:

• Shift from 10% to 15% injection of green hydrogen into natural gas networks.
• Increase the amount of green hydrogen in the energy consumption of the industrial sector from 2% to 5%.
• Raise the share of green hydrogen in road transport energy consumption from 1% to 5%.
• Increase the share of green hydrogen in the energy consumption of domestic maritime transport from 3% to 5%.
• Move from 1.5% to 2% green hydrogen in final energy consumption.
• Increase the number of hydrogen refuelling stations from 50 to 100.

Similarly, Portugal recently launched the first auction to integrate renewable gases (hydrogen and biomethane) into the gas network. Their maximum prices were set at € 127 /MWh for renewable hydrogen and € 62 /MWh for biomethane. Up to 150 GWh/year of biomethane and 120 GWh/year of hydrogen will be put out to tender.

The auction has been designed with the aim of facilitating the integration of renewable gases into the gas infrastructure, with the close collaboration of the National Gas Transmission Network and the National Gas Distribution Network. This initiative is part of the actions to promote the energy transition in Portugal.

A corridor between the Iberian Peninsula and northwest Europe

Portugal, together with Spain, France and Germany, is part of the H2Med green hydrogen corridor project, which aims to increase Europe’s energy security and speed up the development of hydrogen on the continent. It will connect the Iberian Peninsula with France and Northern Europe and will transport 20% of green hydrogen production by 2030.

The interconnection is expected to become operational by 2030, and this strategic infrastructure is expected to be able to transmit up to two million tonnes of green hydrogen each year.

The corridor will connect the Iberian Peninsula and transport 20% of green hydrogen production by 2030

This project includes the CelZa section, which will connect the Portuguese municipality of Celorico da Beira with Zamora. Enagás on the Spanish side and REN on the Portuguese side have signed an agreement with the aim of jointly developing and financing the corresponding studies for the development of the project.

This corridor is part of the European Union’s list of Projects of Common Interest (PCI), which means that this project can access funding and participate in the next call for European funding (CEF Energy 2024), to cover part of the costs related to the studies necessary to make the investment decision, scheduled for 2026, with a view to the commissioning of the corridor in 2030.