The consortium brings together key cement and glass manufacturers with the goal of decarbonizing the country’s manufacturing sector.
The first electrolyzer will service the Marinha Grande and Leiria regions. Coimbra will be the next stop.
The city that became famous globally for its gigantic waves now serves as the inspiration for an innovative project to decarbonize Portuguese industry, which aspires to be a global model. It is called Vale Hidrogénio Verde Nazaré (Green Hydrogen Valley Nazaré), and it brings together a partnership of eight firms that collectively account for 10% of CO2 emissions.
ReGa Energy, a biogas and green hydrogen firm formed by Thomas Carrier, a French engineer who previously worked at Air Liquide, leads the consortium, which also comprises large Portuguese glass and cement companies BA Glass, Crisal, and Vidrala. Additionally, Galp Gás Natural Distribuiço and Guas do Centro Litoral.
The initial investment is estimated to be in excess of 100 million euros, with the creation of 140 new employment. The infrastructure, which will comprise a unit for the generation of green hydrogen and a solar plant to supply the energy required for electrolysis, is expected to be completed by 2023, with operations beginning in late 2025.
Along with clean energy, the partnership will apply circular economy principles by reusing wastewater. It aims to begin with a 40MW installation and work its way up to 600MW.
For the time being, the Nazaré Green Hydrogen Valley (NGHV) will distribute renewable gas to significant energy customers in the Marinha Grande, Leiria, and Coimbra regions. However, the objective is to expand into other sections of the country.
“With its vast renewable resources, exporting premium products, and recruiting new low-carbon companies, Portugal has the potential to become one of Europe’s low-carbon industry powerhouses,” says Thomas Carrier, CEO of ReGa Energy. “We see the Nazaré Green Hydrogen Valley initiative as the first step toward decarbonizing Portugal’s industry, and we look forward to expanding the concept across the country,” he says.
Recycling, energy efficiency, and electrification, he believes, “are insufficient for many heavy industries to reach carbon neutrality.” Green hydrogen is critical in industries such as cement and glass, which require extremely high temperatures throughout the manufacturing process.
Otmar Hübscher and Lus Fernandes, respectively, CEOs of Secil and Cimpor, emphasize the importance of NGHV as a competitiveness factor that contributes to fulfilling the targets set forth in the cement industry’s 2050 Carbon Neutrality Roadmap.
“Glass must be carbon neutral to provide even more value to society and contribute to a more circular economy,” claim the heads of BA Glass, Vidrala, and Crisal. “Because the glass sector cannot electrify its entire operation,” they explain, “the NGHV consortium emerges as a complementing and attractive solution through the delivery of green hydrogen.”
The consortium emits more than one million tons of CO2 every year, accounting for approximately 10% of the industry sector’s total CO2 emissions and 2.5 percent of Portugal’s overall CO2 emissions.
Along with the previously stated businesses, the partnership includes the following research and development technical centers: C5Lab (Association for Sustainable Construction Materials), CTCV (Center for Ceramics and Glass Technology), and the Portuguese Hydrogen Association (AP2H2). Other collaborators include Fusion Fuel, a Portuguese business developing technology for the production of green hydrogen, and Madoqua Ventures, a joint venture between Portugal and the Netherlands focused on energy transition initiatives.
The business plan is predicated on decarbonization, but also on the stability of energy prices through long-term procurement contracts. “The predictability of large enterprises’ energy cost structures will also benefit the country’s resilience, social stability, and long-term job prospects,” the consortium notes.
Renewable gas that is not consumed by the consortium’s clients will be put into the national natural gas network, allowing other industrial enterprises to offset their emissions associated with fossil fuel energy consumption through indirect purchase agreements.
