Copenhagen Infrastructure Partners’ Energy Transition Fund (CIP) has teamed up with Portuguese project developer Madoqua Renewables (Madoqua) and consultancy Power2X (Power2X) to create a €1bn green hydrogen and ammonia plant.
The industrial-scale MadoquaPower2X project will be based in Sines, Portugal, and is expected to create 200+ direct and indirect jobs.
MadoquaPower2X will use renewable energy and 500MW of electrolysis capacity.
It is the first project to be installed at the future energy and technological hub of Sines, with an industrial scale production of 50,000 tonnes of green hydrogen and 500,000 tonnes of green ammonia per year.
This project is the first real step in the implementation of a new energy transition model, of which Portugal is an early mover, asserting itself as a relevant player in the new energy world order.
The hydrogen produced under this project can be used by the local industry as well as processed to create green ammonia for export from the terminal at port of Sines.
Madoqua chief executive Rogaciano Rebelo said: “We are proud to bring this strong consortium to Portugal and collaborate with partners across the green hydrogen and hydrogen derivatives value chain.
“Portugal is structurally well positioned to play a leading role in the emerging energy transition space in Europe.
“The project, along with the development of dedicated renewable power generation assets, will contribute significantly towards Portugal’s National Hydrogen Strategy (EN-H2).”
Electricity will be sourced from renewable power produced in Portugal, in particular from renewable energy communities for wind and solar plants that are being developed in parallel.
This approach will ensure availability of dedicated renewable energy throughout the lifetime of the project.
The project is currently under development and is expected to be fully permitted and ready for a final investment decision by the end of 2023, with construction to commence thereafter and first hydrogen production by the middle of the decade.
Power2X chief executive Occo Roelofsen said: “Power2X is excited to develop this flagship project together with our partners in order to accelerate Europe’s energy transition and contribute significantly to the 2050 net-zero target.
“MadoquaPower2X will pave the way for decarbonisation of critical industrial processes and reduced dependency on natural gas imports.”
MadoquaPower2X, including future phases, will make significant contributions towards Portugal’s National Hydrogen Strategy (EN-H2) by 2030.
In particular, the project will contribute nearly 25% of Portugal’s envisaged 2GW electrolyser capacity by 2030, CIP said.
The integrated hydrogen and ammonia project is expected generate 1,000 (direct and indirect) jobs, including future phases, which equates to 10% to 12% of new job creation targets.
Furthermore, at €1bn of investment, the project will contribute 10% to 15% of Portugal’s hydrogen investment targets.
Additionally, if preferred over ammonia production, MadoquaPower2X could meet 100% of Portugal’s gas grid hydrogen injection targets, CIP said.
Lastly, as this project has the capacity to consume all locally produced hydrogen for ammonia production, it supports the Sines green hydrogen loop initiative as one of the largest launching customers.
The consortium members are exploring opportunities with stakeholders to further expand the project to potentially produce 1 million tonnes of green ammonia per year, reducing CO2 emissions by up to 1 million tonnes per annum.
Subsequent phases will commence development in 2024, with full commissioning before 2030.