A European consortium comprising Portuguese developer Madoqua Renewables, Dutch energy transition project developer and consultancy Power2X and Danish fund manager Copenhagen Infrastructure Partners has announced plans to build a €1bn ($1.08bn) industrial-scale complex for the production of green hydrogen and ammonia in Sines, Portugal.
The Portuguese government placed Sines, which is home to the country’s largest deepwater port, at the centre of the national EN-H2 hydrogen strategy, approved in 2020.
Dubbed the MadoquaPower2X, the project will use renewable energy and 500MW of electrolysis capacity. It is the first project to be installed at Sines, with an industrial-scale production of 50,000 tons of green hydrogen and 500,000 tons of green ammonia per year. The hydrogen produced under this project would be used by the local industry as well as processed to create green ammonia for export from the terminal at the port of Sines.
“Sines provides an excellent location for this project – proximity to local heavy industry, an existing export terminal and the political will demonstrated by Portugal to be a key green hydrogen leader in Europe,” said Philip Christiani, partner at CIP.
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 the first hydrogen production by the middle of the decade. The consortium members are also exploring opportunities with stakeholders to further expand the project to potentially produce 1m tons of green ammonia per year. Subsequent phases will commence development in 2024, with full commissioning before 2030.