The Government has guaranteed that the production of green hydrogen in Portugal will not have costs for electricity consumers.
“We have the capacity to produce this hydrogen. Hydrogen will have no added cost for consumers, ”said the environment minister in Parliament on Tuesday.
João Pedro Matos Fernandes thus answered the questions posed by deputy Hugo Carvalho (PSD) about the industrial project planned for Sines for the production of green hydrogen that will be developed by private promoters. In particular, the Social Democrat wanted to know if it will be the consumers who will pay for this project via the monthly electricity bill, as happened with the development of renewable energies.
The minister pointed out that there is support at European level for the development of these projects. “There are supports worth 30 billion for electrolysers in Europe. They will also be applied in Portugal, in an applied and transparent manner ”, he said.
The green hydrogen power station in Sines will have a total capacity of 1 gigawatt by 2030 and will be powered by electricity from renewable sources, wind and solar. The objective of the Portuguese-Dutch consortium that is developing the project is for the first units of electrolysers to start operating in 2022.
The Government approved on May 21 the National Hydrogen Strategy which aims to leverage projects such as the green hydrogen production plant in Sines, a base investment of more than 2,85 billion euros.
On June 18, the Government opened a period for the expression of interest for companies to participate in the future Important Project of Common European Interest (ICPCEI) Hydrogen, of which the Sines project is the anchor project.
Interested companies submitted their proposals by July 17, 2020, with the result to be known by July 27.
Portuguese-Dutch consortium wants to transform Sines into one of the main green hydrogen centers in southern Europe
The Portuguese-Dutch consortium Resilient Ventures, led by the Dutchman Marc Rechter, aims to transform Sines into the main green hydrogen production center in southern Europe. The objective is to export this gas by ship to the Dutch port of Rotterdam to the largest chemical industrial center in the world in northern Europe, located in the Netherlands and Germany along the Rhine.
“We want to position Sines as the main hydrogen center in southern Europe. We want to present the project [at the European Commission] as soon as possible, ”said Marc Rechter in an interview with Jornal Económico in February this year.
“In 10 years, Sines will be able to develop as a very important hydrogen hub in southern Europe, it has very good characteristics”, he highlights, about the project that has the name of Flamingo Verde (Green Flamingo).
The goal is to produce green hydrogen, from renewable energy, and then be transported in a gaseous state to northern Europe. And what is this hydrogen for? “It is used in refineries, in the steel, cement, pharmaceutical, glass, fertilizer industries”, explains Marc Rechter, pointing out that these sectors currently use gray hydrogen and are looking for less polluting alternatives.
“In Northern Europe, there is beginning to be a very large demand market, because the industry is being pressured to decarbonize. Between the ports of Rotterdam (Netherlands) and Antwerp (Belgium), and the Ruhr area (Germany), there is the largest chemical cluster in the world. It is the largest market for hydrogen in the world ”, explained the promoter, warning that there was a long way to go, as there are several barriers to overcome, including funding and support from the European Commission.
But where does the money for this project come from? “Financing comes from several sides. It will come partly from European programs, partly from state support from Portugal and the Netherlands, instruments from the European Investment Bank, private banks and of course the capital of companies and investment funds ”, he said then.
Regarding deadlines, Marc Rechter pointed out in February that “some initial construction” could start “sometime in the second part of 2021” in Sines. The promoter points out that by 2023 the electrolyzers and solar panels factories may be ready. Then, by 2025, the hydrogen plant should already be “producing and exporting”. Between 2025 and 2030, the project is expected to double hydrogen production.
The project has a total cost of 3,5 billion euros, and foresees the construction of an industrial scale electrolyser factory, another factory to produce photovoltaic solar panels, a solar plant and a green hydrogen plant.
The renewable electricity generated at the solar plant will be used to produce hydrogen through an electrolyser, in a chemical process known as electrolysis.
The factory will produce electrolysers on an industrial scale that will serve, first, for the hydrogen plant in Sines, and then to sell to other hydrogen plants. The project may create five thousand jobs.
As the main export markets, the promoter points to the Netherlands, Belgium and Germany. In Portugal, hydrogen can supply refineries, such as Galp's in Sines, or be used in the natural gas network. The plant may produce 465 thousand tons of hydrogen per year, eliminating the emission of 18,6 million carbon dioxide per year.
The Government has guaranteed that the production of green hydrogen in Portugal will not have costs for electricity consumers.
“We have the capacity to produce this hydrogen. Hydrogen will have no added cost for consumers, ”said the environment minister in Parliament on Tuesday.
João Pedro Matos Fernandes thus answered the questions posed by deputy Hugo Carvalho (PSD) about the industrial project planned for Sines for the production of green hydrogen that will be developed by private promoters. In particular, the Social Democrat wanted to know if it will be the consumers who will pay for this project via the monthly electricity bill, as happened with the development of renewable energies.
The minister pointed out that there is support at European level for the development of these projects. “There are supports worth 30 billion for electrolysers in Europe. They will also be applied in Portugal, in an applied and transparent manner ”, he said.
The green hydrogen power station in Sines will have a total capacity of 1 gigawatt by 2030 and will be powered by electricity from renewable sources, wind and solar. The objective of the Portuguese-Dutch consortium that is developing the project is for the first units of electrolysers to start operating in 2022.
The Government approved on May 21 the National Hydrogen Strategy which aims to leverage projects such as the green hydrogen production plant in Sines, a base investment of more than 2,85 billion euros.
On June 18, the Government opened a period for the expression of interest for companies to participate in the future Important Project of Common European Interest (ICPCEI) Hydrogen, of which the Sines project is the anchor project.
Interested companies submitted their proposals by July 17, 2020, with the result to be known by July 27.
Portuguese-Dutch consortium wants to transform Sines into one of the main green hydrogen centers in southern Europe
The Portuguese-Dutch consortium Resilient Ventures, led by the Dutchman Marc Rechter, aims to transform Sines into the main green hydrogen production center in southern Europe. The objective is to export this gas by ship to the Dutch port of Rotterdam to the largest chemical industrial center in the world in northern Europe, located in the Netherlands and Germany along the Rhine.
“We want to position Sines as the main hydrogen center in southern Europe. We want to present the project [at the European Commission] as soon as possible, ”said Marc Rechter in an interview with Jornal Económico in February this year.
“In 10 years, Sines will be able to develop as a very important hydrogen hub in southern Europe, it has very good characteristics”, he highlights, about the project that has the name of Flamingo Verde (Green Flamingo).
The goal is to produce green hydrogen, from renewable energy, and then be transported in a gaseous state to northern Europe. And what is this hydrogen for? “It is used in refineries, in the steel, cement, pharmaceutical, glass, fertilizer industries”, explains Marc Rechter, pointing out that these sectors currently use gray hydrogen and are looking for less polluting alternatives.
“In Northern Europe, there is beginning to be a very large demand market, because the industry is being pressured to decarbonize. Between the ports of Rotterdam (Netherlands) and Antwerp (Belgium), and the Ruhr area (Germany), there is the largest chemical cluster in the world. It is the largest market for hydrogen in the world ”, explained the promoter, warning that there was a long way to go, as there are several barriers to overcome, including funding and support from the European Commission.
But where does the money for this project come from? “Financing comes from several sides. It will come partly from European programs, partly from state support from Portugal and the Netherlands, instruments from the European Investment Bank, private banks and of course the capital of companies and investment funds ”, he said then.
Regarding deadlines, Marc Rechter pointed out in February that “some initial construction” could start “sometime in the second part of 2021” in Sines. The promoter points out that by 2023 the electrolyzers and solar panels factories may be ready. Then, by 2025, the hydrogen plant should already be “producing and exporting”. Between 2025 and 2030, the project is expected to double hydrogen production.
The project has a total cost of 3,5 billion euros, and foresees the construction of an industrial scale electrolyser factory, another factory to produce photovoltaic solar panels, a solar plant and a green hydrogen plant.
The renewable electricity generated at the solar plant will be used to produce hydrogen through an electrolyser, in a chemical process known as electrolysis.
The factory will produce electrolysers on an industrial scale that will serve, first, for the hydrogen plant in Sines, and then to sell to other hydrogen plants. The project may create five thousand jobs.
As the main export markets, the promoter points to the Netherlands, Belgium and Germany. In Portugal, hydrogen can supply refineries, such as Galp's in Sines, or be used in the natural gas network. The plant may produce 465 thousand tons of hydrogen per year, eliminating the emission of 18,6 million carbon dioxide per year.