The first auction of the European hydrogen bank selected seven projects that will be supported with around 720 million euros, and among them are two projects in Portugal, both to be developed in Sines, one by Galp and the other by Madoquapower2X, the European Commission revealed this Tuesday.
Galp’s project aims to convert the consumption of gray hydrogen at its refinery in Sines into green hydrogen, with the Portuguese company securing community support of 84.2 million euros (which will be channeled towards its project over 10 years). Galp competed requesting support of 0.39 euros per kilogram of green hydrogen (estimating total production at 216 thousand tons).
The Madoquapower2X project, called MP2X, applied for support requesting 0.48 euros per kilogram (for a total production of green hydrogen of 511 thousand tons). This project will absorb the largest support from this first auction promoted by the European Commission, guaranteeing more than 245 million euros.
In the list of seven chosen projects (among 132 competitors) there were also three projects in Spain (one of them will receive 230 million euros in support, another 24.6 million euros and a third 8.1 million).
The hydrogen bank will also provide subsidies for the production of hydrogen in two other projects, one in Finland (45.2 million euros) and the other in Norway (81.3 million).
Together, the seven winners plan to produce 1.58 million tons of green hydrogen over a decade, avoiding carbon dioxide emissions of 10 million tons, according to the European Commission.
The support serves to help promoters compensate for the fact that the production of green hydrogen is still more expensive today than the production of conventional hydrogen (obtained, for example, from natural gas).
The selected projects have a maximum period of five years to start production.
Brussels plans to launch a second green hydrogen auction later this year.
Tags: Portugal among main winners European hydrogen bank auction
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