Portugal Eyes Hydrogen Projects Worth €16bn

The Portuguese government is reviewing hydrogen proposals worth €16 ($18)bn as it vies to host a coveted Important Project of Common European Interest (IPCEI) project.

The 74 expressions of interest were received July 17 in response to Order no. 6403-A / 2020 of June 18. Projects covered areas ranging from producing green hydrogen to transport. Most are focused on the chemicals industry. Reducing greenhouse gas emissions was stipulated as a fundamental requirement.

Submissions will be analysed by the government’s project admission committee with technical support from the general directorate of energy and geology and by the national laboratory of energy and geology. An information day will be held on July 27.

A public consultation on Portugal’s National Hydrogen Strategy ended July 6, with more than 80 comments, 40 of which were from companies.

The country is already planning a €5bn solar-powered hydrogen plant near the port of Sines, which could begin construction next year and commence operations by 2023. Eventually producing 1 GW of hydrogen, the plant has already attracted interest from Portugal’s EDP and Galp Energia, as well as the Dutch government.

The location of the plant is strategic, as it is home to an industrial complex and an LNG import terminal. And the coal plant there will close two years ahead of schedule in 2021 as climate targets strengthen and renewable power prices fall. Portugal has some of the lowest prices for solar power in the world with 1.2GW contracts awarded last year at €14.80/MWh. The latest auction for 700MW will accept bids up to 31st July, having been postponed due to Covix-19.

The European Commission has said that it is considering recommendations by the IPCEI Strategic Forum to promote joint investments across several member states to support a hydrogen supply chain.