Portugal and Morocco have reaffirmed a strategic partnership that puts green hydrogen, power interconnection and maritime connectivity at the centre of a Euro-African energy corridor.
The renewed push followed a ministerial meeting in Lisbon in late July 2025 and a joint statement stressing “excellent bilateral ties” and a shared intent to operationalise prior commitments.
What’s actually being built?
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A Portugal–Morocco electricity interconnector
The flagship physical link is a high-voltage direct-current (HVDC) subsea cable concept of around 1 GW and around 265 km in length (about 220 km submarine), studied by the two governments and their grid operators (Portugal’s REN and Morocco’s ONEE). This would allow bidirectional power flows, crucial for balancing intermittent renewables and, over time, for integrating hydrogen-linked power offtake. Technical variants assessed include 500 kV LCC or 400–500 kV VSC HVDC.
Momentum on the project has picked up, with REN and ONEE mandated to propose a construction and financing model—an implementation step beyond previous feasibility work.
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Hydrogen and “Power-to-X” on both shores
In Morocco, the government has shifted from vision to execution with MAD 319bn ($32.5bn) worth of green hydrogen projects approved/selected in 2025. Named and shortlisted players include Ortus (US), Acciona (Spain), Nordex (Germany) and alliances involving European and Gulf capital, focusing on green ammonia, e-fuels and industrial hydrogen in the south of the country. These fit within Morocco’s “Hydrogen Offer”, which earmarks large tracts of public land and an integrated value chain from electrolysis to ammonia/methanol and logistics.
Industrial anchors are also forming: OCP Group (phosphates/fertilisers) has a JV with Fortescue to supply green hydrogen, ammonia and fertilisers for domestic and export markets; Engie–OCP agreed a multi-billion-euro programme spanning renewables, green ammonia and desalination; TotalEnergies is studying a green ammonia export project linked to 1 GW of wind/solar.
In Portugal, Sines is emerging as the Atlantic hub:
- Galp has taken FID on a 100 MW electrolyser for refinery decarbonisation at Sines, supported by €180m of EU funding.
- The GreenH2Atlantic consortium (EDP, Galp, Engie, Bondalti, Vestas, Efacec and others) is building a 100 MWrenewable hydrogen project at Sines.
- MadoquaPower2X plans up to 2 GW of electrolysers to produce green ammonia and hydrogen for export, with a dedicated terminal and a green maritime corridor linking Sines to Northern Europe (Rotterdam/Duisburg).
- Repsol’s H2Alba programme at Sines adds further renewable hydrogen capacity for lower-carbon industrial feedstocks.
Nationally, Portugal has also approved a pilot to inject up to 10% hydrogen into the gas grid, signalling systems-readiness for hydrogen offtake.
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Ports and shipping connectivity
The port dimension underpins both trade and future hydrogen logistics. Tanger Med, Morocco’s Atlantic–Mediterranean megaport—handled 142 Mt and 10.24m TEU in 2024, with regular links to 180+ ports in 70 countries, expanding Ro-Ro and container capacity central to green fuel exports. On the Iberian side, Sines is positioning for bunkering and handling of green ammonia, hydrogen and e-methanol.
Who’s involved (selected list)
- Governments/TSOs: Portugal (Ministry of Environment & Energy; Foreign Affairs), Morocco (Ministry of Energy Transition; Foreign Affairs), REN (Portugal), ONEE (Morocco).
- Developers & industrials (Morocco): OCP–Fortescue JV; Engie–OCP collaboration; TotalEnergies/TE H2with partners; Acciona, Nordex, Ortus in selected projects; ACWA Power (active in Moroccan renewables portfolio).
- Developers & industrials (Portugal/Sines): Galp (100 MW electrolyser); GreenH2Atlantic consortium (EDP, Galp, Engie, Bondalti, Vestas, Efacec, research partners); Madoqua Renewables/Power2X/CIP (MadoquaPower2X); Repsol (H2Alba).
- Ports/logistics: Tanger Med; Port of Sines, with a developing green maritime corridor to Northern Europe.
Why the economics make sense
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Resource arbitrage & system value:
Morocco’s world-class solar and wind resources can generate low-cost electricity for hydrogen at scale, while Portugal provides EU market access, established grids and a deep-water Atlantic port for export fuels. The planned HVDC interconnector enables real options: direct power trade when price spreads are attractive and indirect support for hydrogen production by stabilising renewable power profiles across both systems.
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Scale and capital formation:
Morocco’s 2025 green-hydrogen selections/approvals (~$32.5bn) signal investable scale and policy traction (land access, permitting, offtake pathways via ammonia). On the Portuguese side, multiple FID-stage projects (e.g., Galp’s 100 MW, EU-backed) and maritime infrastructure in Sines create bankable downstream demand and logistics. Together, they de-risk private capital with complementary public support (EU funds, national programmes).
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Export pull & industrial anchors:
Europe’s decarbonisation plans foresee up to 10 Mt/y of renewable hydrogen imports by 2030, with early demand concentrated in ammonia (fertilisers/shipping fuel) and refining . The OCP–Fortescue and Engie–OCP platforms provide immediate industrial offtake (fertilisers, chemicals) while Sines projects target export cargoes (ammonia/e-methanol), aligning supply with near-term use cases.
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Port competitiveness & trade lanes:
Tanger Med’s global connectivity and Sines’ Atlantic positioning reduce logistics costs and time-to-market for green fuels into Northern Europe, especially as green shipping corridors standardise bunkering and handling. High-throughput ports lower per-tonne fixed costs for early hydrogen-derived commodities.
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System integration benefits:
Portugal’s H₂-into-gas-grid pilot and refinery integrations (Galp) illustrate early domestic offtake that smooths demand variability, helpful for project finance. Meanwhile, an HVDC interconnector improves capacity factors and price capture for renewables on both sides, enhancing project IRRs relative to standalone build-outs.
Risks to watch
- Interconnector timing & capex: subsea HVDC projects require complex permitting, seabed surveys and stable cross-border regulation; slippage would delay portfolio balancing benefits.
- Hydrogen market formation: certification rules, offtake pricing (vs. grey/blue alternatives) and shipping standards (ammonia toxicity, boil-off management) remain evolving; EU support is pivotal. (Inference based on current EU funding patterns for Portuguese projects.).
- Geopolitical and environmental: desalination power needs and water management for large electrolysis parks in southern Morocco must be engineered into LCOH; port safety and corridor protocols must mature as volumes rise.
Bottom line
This alliance is more than warm words. It is stitching together generation scale in Morocco, industrial demand and export gateways in Portugal, and a hard-wired interconnector to arbitrage power and stabilise systems. With billions now flowing into projects and consortia spanning OCP–Fortescue, Engie, TotalEnergies, Galp, EDP, Repsol, Madoqua/CIP and others, Portugal–Morocco is on track to become a flagship Euro–African green-energy corridor—provided the interconnector and early offtake milestones land on time.
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