The Iberian Peninsula is becoming one of the main centers for the production of green hydrogen worldwide.
In fact, the fourth large-scale project has now been approved, marking the dominance of the two countries, relative to Europe, in this area.
The project will give even more relevance to the port of Sines.
The Iberian Peninsula has been home to numerous investments that are transforming it into an important energy player. Alongside the path it has taken to become a center for the production of green hydrogen, these investments have also boosted renewable energies, giving them increasing strength and relevance.
Now, a new investment led by three companies has emerged. It will bring together one billion euros to create a 500 MW infrastructure that will be installed in the port of Sines, in the district of Setúbal. The Portuguese company Madoqua will be joined by Copenhagen Infrastructure Partners and the Dutch consulting firm Power2X.
This partnership will give rise to a 500 MW infrastructure of electrolyzers, capable of producing 50,000 tons of green hydrogen and 500,000 tons of green ammonia per year. The energy required for a project of this scale will come from renewable energy facilities, such as wind and solar farms, under development in Portugal.
The green hydrogen produced by the project will be used by local industry, and processed to create green ammonia for export from the port of Sines.
The companies involved hope that the structure will be fully licensed by the end of next year, and that it will be possible, by then, to start construction. The expectation for the start of production points to 2025. In addition, on the table is the possibility of expanding the project to one million tons of green ammonia.
Iberian Peninsula gathers interested parties for the production of green hydrogen
This is the second large-scale green hydrogen project announced this year for the Iberian Peninsula by Copenhagen Infrastructure Partners. After all, they had already unveiled the Catalina project, which will deploy 5 GW of renewables and 2 GW of catalysts between Aragon and Valencia, involving companies such as Enagás, Naturgy, Fertiberia and Vestas.
In addition, in February, HyDeal Spain, a hydrogen project with 7.4 GW of electrolyzer capacity, was announced. Earlier, a 2 GW plan, led by Repsol and based in northern Spain, had already been unveiled.
According to experts, the growing interest in the Iberian Peninsula for the establishment of green hydrogen infrastructure is due to the potential that Portugal and Spain bring together for solar and wind power production. This allows the two countries to produce green hydrogen at a lower price compared to other countries in Europe.
