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
  • An official April 2021 English language presentation on hydrogen strategy in Portugal can be found here.

Guarantees of Origin are an important facilitator in the development of renewable energy; Decree-Law 60/2020, published on 17 August 2020, presented the process for issuing Guarantees of Origin for, amongst other things, low-carbon gas and gas of renewable origin.

(Note: On 6 July 2021, the Directorate-General for Energy and Geology (DGEG) published the Invitation relating to the 1st Auction of Guarantees of Origin in the Ownership of the National Electricity System, planned to be held on 28 July 2021; on 12 July 2021, the DGEG held a clarification session in English to explain the rules and the general model of the auction, as well as detailing the characteristics of the products to be auctioned.)

Complementary to the Strategy, in September 2020, the Portuguese and Dutch Governments signed a Memorandum of Understanding “to affirm their intention to connect Portugal’s and the Netherlands’s 2030 hydrogen plans and develop a strategic export-import value chain to ensure production and transport of green hydrogen from Portugal to the Netherlands and its hinterland via the ports of Sines and Rotterdam.”

In April 2021, it was announced that Portugal and the European Investment Bank (EIB) had executed a (non-binding) Memorandum of Understanding to support development of the hydrogen industry in the country.

In October 2022, it was reported that Spain, Portugal and France had agreed to build a sea-based pipeline (H2Med) to carry hydrogen and gas between Barcelona and Marseille. In December 2022, it was further reported that the pipeline would be exclusively dedicated to green hydrogen, would cost around €2.5 billion, would have capacity to transport two million tonnes of hydrogen per annum, and should be completed by 2030. The report noted that the three countries would submit the project to the EC for declaration as a ’project of common interest’. In January 2023, it was announced that, as part of a French-German declaration, the two countries would take the necessary steps on a European backbone for hydrogen transport across Europe, including the necessary national and transnational hydrogen infrastructures and, in particular, the extension and connection of existing and planned infrastructures, including extension of the H2Med pipeline to Germany in close cooperation with involved partners. 

In January 2023, media reports indicated that the Portuguese Government had published measures to launch new auction schemes for offshore wind and renewable gas. It is anticipated that the first auction would be held in 2023 with a (reported) award of 10-year contracts for approximately 3,000 tons of green hydrogen and 10,000 tons of renewable methane per annum. It is reported that the purchased products would be on-sold to gas suppliers for blending into natural gas networks.

 

Updated: January 2023