The Iberian Peninsula becomes the main European hub for green hydrogen

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The Iberian Peninsula is becoming one of the main centers of green hydrogen production in the world. Indeed, the fourth major project has just been approved, marking the domination of the two countries, compared to Europe, in this area.

The project will give even more relevance to the port of Sines.

green hydrogen

The Iberian Peninsula has hosted many investments that are transforming it into an important energy player. Along with the path it followed to become a production center for green hydrogenthese investments have also energized renewable energies, giving them more and more strength and relevance.

Now, a new investment led by three companies has emerged. This will make it possible to raise one billion euros, to give birth to an infrastructure of 500 MW, which will be installed in the port of Sines, in the district of Setúbal. Portuguese Madoquawill join the Copenhagen Infrastructure Partners and the Dutch consultant Power2X.

This partnership will give rise to an infrastructure of 500 MW of electrolysers, capable of producing 50,000 tonnes of green hydrogen and 500,000 tonnes of green ammonia per year. The energy required by a project of this magnitude will come from renewable energy installations, such as wind and solar farms, being developed in Portugal.

Port of Sines in Portugal, Iberian Peninsula

Port of Sines, in the district of Setúbal, Portugal

The green hydrogen produced by the project will be used by local industry and transformed to create green ammonia to be exported from the port of Sines.

The companies involved hope the structure will be fully licensed by the end of next year, when it will be possible to begin construction. The expectation for the start of production points to 2025. Also on the table is the possibility of expanding the project to one million tonnes of green ammonia.

The Iberian Peninsula brings together players in 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 revealed the Catalina project, which will deploy 5 GW of renewable energy and 2 GW of catalysts between Aragon and Valencia, involving companies such as Enagás, Naturgy, Fertiberia and Vestas.

Additionally, in February HyDeal Spain was announced, a hydrogen project with 7.4 GW of electrolyser capacity. Earlier, a 2 GW plan had already been revealed, led by Repsol and based in northern Spain.

According to experts, the growing interest of the Iberian Peninsula in setting up green hydrogen infrastructure is due to the potential that Portugal and Spain have for the production of solar and wind energy. This allows the two countries to produce green hydrogen at a lower price compared to what is practiced in other European countries.

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