European consortium launches project for large-scale production of green hydrogen and ammonia

Project aim is to produce green hydrogen and ammonia on an industrial scale. This will take place in Sines, Portugal. It is the first project at this energy and technology hub. Annual industrial-scale production is expected to be 50,000 tonnes of green hydrogen and 500,000 tonnes of green ammonia. MadoquaPower2X will use renewable energy and 500 MW of electrolysis capacity for this purpose.

The project is a first real step towards energy transition. With it, Portugal aims to fulfil its role as an internationally relevant player in the European energy transition. Local industry can use the hydrogen produced. Or it can be processed into green ammonia for export through the Liquid Bulk Terminal at the port of Sines.

"We are proud to bring this strong consortium to Portugal. And to work with partners in the value chain of green hydrogen and hydrogen carriers. Portugal is structurally well positioned to play a leading role in Europe's emerging energy transition. The project will therefore contribute significantly to achieving the goals of Portugal's hydrogen strategy." So says Rogaciano Rebelo, CEO of Madoqua.

Electricity will come from renewable energy. It is produced in Portugal from so-called "renewable energy communities" for solar and wind farms. Its development runs in parallel with the MadoquaPower2X project. This approach ensures the availability of sufficient renewable energy throughout the life of the project.

The project is currently under development. It is expected to have all permits by the end of 2023. It will then be ready for a final investment decision, after which construction will start. First hydrogen production will be a reality by the middle of this decade.

Occo Roelofsen is CEO of Power2X. He states, "Power2X is proud to develop this pioneering project with our partners. This will enable us to accelerate the energy transition in Europe. And make a significant contribution to the 2050 net-zero target. MadoquaPower2X paves the way for CO2-free design of critical industrial processes. It also helps to reduce dependence on natural gas imports."

MadoquaPower2X will contribute significantly to Portugal's national hydrogen strategy by 2030. For instance, the project will account for almost 25 per cent of Portugal's target of 2 GW of electrolysis capacity by 2030. With an investment of one billion euros, the project will additionally contribute 10 to 15 per cent to Portugal's hydrogen investment targets.

Moreover, if hydrogen is preferred to ammonia production, MadoquaPower2X can meet 100 per cent of the targets for hydrogen blending in the Portuguese gas grid. The project has the capacity to use all locally produced hydrogen for ammonia production. It can therefore be seen as one of the largest launching customers in supporting the Sines green hydrogen pipeline initiative.

Moreover, the integrated hydrogen and ammonia project will create a thousand jobs (direct and indirect). This includes future phases. It amounts to 10 to 12 per cent of the new job creation targets.

João Galamba, Secretary of State for Environment and Energy: "This important investment represents the effective implementation of the Portuguese National Hydrogen Strategy. This is both in line with the European Industrial Strategy, and the recent measures proposed by the European Commission under 'Repower EU'."

The consortium members, together with stakeholders, are exploring opportunities to expand the project further. This with the aim of potentially producing one million tonnes of green ammonia per year. This will reduce CO2 emissions by up to one million tonnes per year. The next phases will start development in 2024, with full commissioning before 2030.

Philip Christiani, partner at CIP: "We are very pleased to announce our involvement in MadoquaPower2X. It is a progressive European project for green hydrogen production. Sines offers an excellent location for this project. Consider its proximity to local industry that needs hydrogen. In addition, there is an existing export terminal at the port. Moreover, there is Portugal's political will to play a leading role in green hydrogen in Europe. We therefore look forward to making MadoquaPower2X a success together with our consortium partners."