27 July 2020

REN, Galp, EDP, Martifer, and Vestas evaluate creation of green hydrogen industrial cluster in Sines

REN, EDP, Galp, Martifer, Vestas and several European partners intend to evaluate the viability of the H2Sines project, which aims to implement an industrial cluster for the production of green hydrogen based in Sines. The project comprises an important international dimension, both for its export vocation and for the mobilization of partners with vast experience in the hydrogen value chain.

The project intends to leverage the competitive advantages of endogenous renewable natural resources, contributing to the reindustrialization of the Portuguese and European economies on a more sustainable basis, as well as to the commercial trade balance.

The production of green hydrogen contemplated by the H2Sines project integrates and optimizes the entire value chain, including the generation of renewable electricity, the production of hydrogen and its distribution, transport, storage, marketing and export.

As part of this pan-European project, an international MoU was signed to study the feasibility of creating a value chain for the export of hydrogen from Sines to Northern Europe. In addition to the export side, the green hydrogen might be used nationally in the industrial and transport sectors, as well as for injection into the natural gas network, contributing to the economy's decarbonisation effort and strengthening competitiveness. of national tradable goods in the European space.

Ensuring the financial balance of the project, it should progressively develop, seeking to optimize the adequacy of the hydrogen production volumes and the respective consumption, as well as the cost competitiveness of the technologies involved. In a first phase, the installation of a 10MW electrolysis pilot project is expected, which over the course of the current decade and under certain economic and technologic criteria might evolve up to 1GW of electrolysis capacity supported, in the long term, by  1.5GW of capacity to generate renewable electric energy to power the electrolysers. 

The project responds to the challenge launched by the Portuguese Government within the scope of the National Hydrogen Strategy, particularly because of its export dimension, but also because of the potential contribution that it is expected to make in the transition of the Portuguese industry sector to a sustainable energy matrix. If fulfils, for that purpose, all the criteria for the application to the status pf applying for the status of Major Project of Common European Interest (IPCEI).

The entry of additional partners is supported by statements of interest from companies with an international dimension in the energy sector, as well as technology producers for the hydrogen value chain. The technological collaboration aspect is essential for improving the competitiveness of the project, which is still at a preliminary stage, essential for the assessment of the respective conditions of framing and making the market cost-efficient.

The project also provides for the creation of an industrial component for the production of value-added equipment for hydrogen projects and the development of an internationally renowned R&D+I cluster, that is already sponsored by more than 20 national companies, institutes and national universities. 


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