Plans for green hydrogen and ammonia project in Portugal revealed

Green hydrogen

Portuguese project developer Madoqua Renewables has announced a partnership with Dutch energy transition project developer and consultancy Power2X and Danish fund manager Copenhagen Infrastructure Partners’ Energy Transition Fund (CIP) to build MadoquaPower2X, a €1 billion industrial-scale project for the production of green hydrogen and ammonia in Sines, Portugal.

MadoquaPower2X will use renewable energy and is aiming to provide 500 megawatts (MW) of electrolysis capacity. It is the first project to be installed at the future energy and technological hub of Sines, with an industrial-scale production of 50,000 tonnes of green hydrogen and 500,000 tonnes of green ammonia per year.

The hydrogen produced under this project will be used by local industry, as well as processed to create green ammonia for export from the terminal at the port of Sines.

Rogaciano Rebelo, CEO of Madoqua, explained: “We are proud to bring this strong consortium to Portugal and collaborate with partners across the green hydrogen and hydrogen derivatives value chain. Portugal is structurally well-positioned to play a leading role in the emerging energy transition space in Europe. The project, along with the development of dedicated renewable power generation assets, will contribute significantly towards Portugal’s National Hydrogen Strategy (EN-H2).“

Electricity will be sourced from renewable power produced in Portugal, specifically from wind and solar plants that are being developed in parallel. This approach will ensure availability of dedicated renewable energy throughout the lifetime of the project.

The project is currently under development and is expected to be fully permitted and ready for a final investment decision by the end of 2023, with construction to commence thereafter and the first hydrogen production by the middle of the decade.

Occo Roelofsen, CEO of Power2X, commented: “Power2X is excited to develop this flagship project together with our partners in order to accelerate Europe’s energy transition and contribute significantly to the 2050 net-zero target. MadoquaPower2X will pave the way for decarbonisation of critical industrial processes and reduced dependency on natural gas imports.”

MadoquaPower2X, including future phases, is aiming to make significant contributions toward Portugal’s National Hydrogen Strategy (EN-H2) by 2030. In particular, the project will contribute nearly 25 per cent of Portugal’s envisaged two GW electrolyser capacity by 2030. The integrated hydrogen and ammonia project hopes to generate 1,000 jobs, including future phases, which equates to between ten and 12 per cent of new job creation targets. Furthermore, at €1 billion of investment, the project will contribute between ten and 15 per cent of Portugal’s hydrogen investment targets.

João Galamba, Portuguese Secretary of State of Environment and Energy, said: “This important investment represents the actual implementation of Portugal’s National Strategy for Hydrogen, in line with the European Industrial Strategy, as well as the more recent measures proposed by the European Commission on Repower EU.”

The consortium members are exploring opportunities with stakeholders to further expand the project to potentially produce one million tonnes of green ammonia per year, reducing CO2 emissions by up to one million tonnes per annum. Subsequent phases will commence development in 2024, with full commissioning before 2030.

Philip Christiani, Partner at CIP, said: “We are thrilled to announce our involvement in MadoquaPower2X, a pioneering European green hydrogen project. Sines provides an excellent location for this project – proximity to local heavy industry, an existing export terminal and the political will demonstrated by Portugal to be a key green hydrogen leader in Europe. We look forward to working with our consortium partners to bring MadoquaPower2X to life.”

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