Portugal is rapidly establishing itself as a major player in the green hydrogen (H₂) sector, positioning the country to become a vital supplier to mainland Europe in the coming decades.
Backed by favourable geography, an abundance of renewable energy, and strong political support, Portugal is drawing substantial domestic and international investment into its hydrogen economy.
Green Hydrogen: A Strategic Priority
Green hydrogen, produced using renewable energy sources such as wind and solar, is central to the EU’s climate ambitions. As the bloc moves to decarbonise heavy industry, transport, and power sectors, member states are racing to scale up green hydrogen production and infrastructure. Portugal, with its vast solar and wind resources, is emerging as a natural leader in this transition.
The Portuguese government has recognised the strategic potential of green hydrogen, embedding it in its National Energy and Climate Plan (NECP) and committing to significant hydrogen production targets by 2030. The country is particularly well-suited to export hydrogen, thanks to its Atlantic coastline and maritime infrastructure, including the deep-water port of Sines.
The Sines Hydrogen Hub
One of the flagship initiatives is the Green Hydrogen Alliance for Sines, a large-scale project that aims to turn the port of Sines into a European gateway for green hydrogen exports. Backed by a consortium including GALP Energia, EDP, REN, and international players such as ENGIE and Bondalti, the Sines Hydrogen Hub is projected to become a major production and export centre by the early 2030s.
In 2023, MadoquaPower2X, a joint venture between Madoqua Renewables, Power2X, and CIP (Copenhagen Infrastructure Partners), received preliminary approval for a €1 billion investment in a 500 MW electrolyser facility near Sines. The plant is expected to produce up to 50,000 tonnes of green hydrogen annually, which could be converted to ammonia for easier export to northern Europe.
H2Med: The Hydrogen Pipeline Linking Portugal to Europe
Portugal is also part of the H2Med initiative, a hydrogen pipeline project that will connect the Iberian Peninsula to France and central Europe. The pipeline, backed by Portugal, Spain, France and Germany, is expected to be operational by 2030 and will significantly improve the cross-border transport of green hydrogen. The Portuguese segment of the pipeline will link Sines with the Spanish network, facilitating the efficient movement of hydrogen from production to demand centres.
Other Notable Projects
Several other projects further illustrate Portugal’s hydrogen ambitions:
- Fusion Fuel Green, a Portuguese company based in Évora, is developing small-scale decentralised hydrogen production systems using solar-driven electrolysis. The company has launched multiple pilot projects and is partnering with international firms to deploy its technology in southern Europe and North Africa.
- EDP Renewables is investing in converting natural gas plants into hydrogen-ready infrastructure. In particular, the company is exploring repurposing its power station at Ribatejo for green hydrogen blending.
- HyLab, a collaboration between EDP, Galp, and CEiiA, is operating in Guimarães as a research and innovation hub focused on industrial-scale hydrogen applications.
Haush is establishing its European headquarters in Portugal as it has identified that its green hydrogen and energy solutions will have a significant impact on the country’s ambitions.
Challenges and Outlook
Despite the promising progress, Portugal still faces key challenges, including the need to scale up renewable energy production, streamline permitting processes, and coordinate international demand and infrastructure. The cost of green hydrogen remains high compared to fossil alternatives, although falling renewable prices and technological improvements are expected to close the gap.
Nevertheless, Portugal’s rapid mobilisation of public and private capital, combined with its geographic advantages, places it on track to become a major exporter of green hydrogen to energy-hungry northern European markets. As the continent races towards net-zero, Portugal is no longer just a peripheral player; it is fast becoming a cornerstone of Europe’s green hydrogen future.
The post Portugal Emerges as a Future Green Hydrogen Powerhouse for Europe first appeared on Haush.