Portugal

Country: Portugal

Document type: National Strategy

Title: Portugal National Hydrogen Strategy (EN-H₂) (Portuguese language)

(English language enabled of the Resolution of the Council of Ministers)

Released: July 2020

Summary Points:

• The Strategy sets several objectives for (green) hydrogen deployment by 2030, including:
  • 2-2.5 GW of installed electrolyser capacity
  • 10-15% hydrogen injection into natural gas networks
  • 2-5% hydrogen in the energy consumption of the industry sector
  • 1-5% hydrogen in the energy consumption of road transport
  • 1.5-2% hydrogen in final energy consumption
  • Creation of 50-100 hydrogen fuelling stations
• Implementation of the Strategy is in three phases:
  • Phase 1 2020-2023 – adopting the regulatory framework, reviewing/implementing investment support measures, small-medium projects approved, designing R&D incentives, starting the Sines industrial project
  • Phase II: 2024-2030 – strengthening the regulatory framework, enhancing support mechanisms with EU funds, varied scale projects implemented nationwide, implementing the large-scale Sines project (with a planned installed electrolyser capacity of at least 1 GW by 2030)
  • Phase III 2030-2050 – consolidating hydrogen as a decarbonisation instrument

• The Strategy is to be implemented based on several European and national support and funding strategies, including the EU ‘Next Generation’ budget program.

In its Updated National Energy Plan and Climate 2021-2030 (NCEP 2030 – as published by the EC in December 2024) an installed electrolyser target of 3 GW capacity for 2030 was included.

Funding Support

Portugal’s Recovery and Resilience Plan (including RePowerEU measures) includes an allocation of €255 million to support Portugal’s ambition to expand the production of renewable hydrogen and other renewable gases. This total appears comprised of the following amounts:

Recovery and Resilience Programme – €185 million

• First round – media reporting (August 2023) indicated €102 million allocated, 25 new projects, installed capacity of 106 megawatts (MW).
• Second round – €83 million allocation, applications received (as at time of above media reporting August 2023).

REPowerEU – €70 million

• Allocation of €70 million announced (August 2023) under REPowerEU. In July 2025, it was announced that 17 projects were approved to strengthen the national capacity for the production, storage and distribution of renewable hydrogen and other renewable gases, totaling €70 million.

Media reports indicated that in December 2023, the EC announced that it had authorised a €140 million Portuguese scheme to support the production of renewable hydrogen and biomethane. It is reported that the scheme, adopted by the Commission in March 2023 and amended in November 2023, will take form of a variable premium under a two-way contract for difference concluded for a duration of 10 years.  In May 2024, media reports indicated that the Government announced the launch of an auction for the centralised purchase of hydrogen and biomethane, €140 million.

In March 2024, the EC announced approval, under the State aid Temporary Crisis and Transition Framework, of a €350 million Portuguese scheme to support investments for the production of equipment necessary to foster the transition towards net-zero, including amongst other things for electrolyser manufacture. The scheme will take the form of direct grants.

In September 2024, the EC approved, under the State aid Temporary Crisis and Transition Framework, a €1 billion Portuguese scheme to support investments for the production of equipment necessary to foster the transition towards a net-zero economy. The measure will be open to companies producing relevant equipment, namely batteries, solar panels, wind turbines, heat-pumps, electrolysers, equipment for carbon capture usage and storage, as well as key components designed and primarily used as direct input for the production of such equipment or related critical raw materials necessary for their production. Under this measure, the aid will take the form of direct grants.

Sines Refinery Project

In September 2023, Galp announced it had taken the final investment decision on two large scale projects to reduce the carbon footprint of the Sines refinery and of its products – a 270 ktpa advanced biofuels unit, in partnership with Mitsui, and a 100 MW electrolyser system for the production of green hydrogen

In February 2025, the European Investment Bank announced it had granted a €430 million loan for the two projects in construction at Galp’s Sines Refinery, and which represent a total investment of €650 million.

• The Biofuels unit will receive €250 million of financing and will produce low-carbon fuels.
• The renewable hydrogen production unit (100 MW) will receive €180 million in financing and will be capable of producing 15,000 tons of renewables-based hydrogen per annum. Both projects are planned to be operational in 2026.

In October 2025, it was announced that the first 10 MW electrolysis module of ten such modules had been delivered to the Sines Refinery project.

H2MED Pipeline

In June 2024, agreements were signed or formalised to progress the European H2Med corridor – consisting of a connection between Celorico da Beira in Portugal and Zamora in Spain (CelZa – a 248-kilometre interconnection, 0.75 mtpa of hydrogen maximum capacity) and a maritime connection between Barcelona and Marseille (BarMar – a 455-kilometre sub-sea pipeline, 2 mtpa of hydrogen maximum capacity).

In January 2025, the EC announced the allocation of almost €1.25 billion in grants from the Connecting Europe Facility (CEF) to 41 cross-border energy infrastructure projects, including:

• A total of approximately €35.6 million in grants awarded for H2Med project studies with €28.34 million supporting the BarMar project and €7.22 million the Celza project.
• A total of approximately €40.2 million for the first axes of the Spanish Hydrogen Backbone, including studies for underground storage related to the Spanish Hydrogen Backbone.

In July 2025, Enagas noted that the Transmission System Operators had signed a Shareholders’ Agreement which establishes the creation of a joint venture dedicated to the development of the BarMar project.

In November 2025, the H2Med website confirmed the technical feasibility of the BarMar hydrogen pipeline, and that the commercial operation date of BarMar is now 2032 as well as for the CelZa project.

 

Reviewed: November 2025