In the second part of this year, Portugal said it will hold a ground-breaking auction for the rights to sell hydrogen for injection into its natural gas infrastructure. The nation’s efforts to cut greenhouse gas emissions include the first auction ever held in Europe.
In order to achieve its lofty emission reduction goals by 2030, the Portuguese government is now looking to green hydrogen. When hydrogen is added to the natural gas grid, it can take the place of fossil fuels like coal and natural gas. Hydrogen can be produced from renewable resources like wind and solar energy.
A new organization named Gás Natural de Portugal (GNP), which will purchase renewable hydrogen and biomethane at auction and subsequently sell it to gas firms, will oversee the auction. By 2030, the goal is to double the proportion of green hydrogen in the natural gas system, from 1% to 10%.
According to Gabriel Sousa, the GNP representative in Lisbon, “this is a crucial step towards achieving our climate objectives.” “We are certain that this auction will assist us in decreasing emissions and benefit businesses economically at the same time.”
The Portuguese government has previously taken measures to promote the use of green hydrogens, such as funding study and development initiatives pertaining to electrolysis technology, which uses energy to create hydrogen from water.
Additionally, it has started programs like H2Global to make it easier to import sustainable aviation fuel, e-methanol, and renewable ammonia through auctions.
Yet, incorporating hydrogen into the European gas system has several drawbacks. For instance, there is a limit on how much hydrogen can be blended into existing pipelines without running the risk of explosions or other mishaps due to safety issues.
In addition, guidelines or standards must be established for how much hydrogen should be incorporated into the grid or how it should be securely stored.
Portugal is still dedicated to cutting emissions through increased use of green hydrogen, despite these obstacles. The next auction is anticipated to assist Portugal to reach its climate goals while also giving firms that make renewable fuels a much-needed boost.
