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Hydrogen Market in Portugal
Energy Market Research

For whom
This study is for those who search for specific information about hydrogen
market in Portugal:
_ Directors and Managers in the energy sector and other sectors of activity where the energy transition could
have a great impact;
_ Professionals from public organizations, who wish to participate in the energy transition;
_ Professionals from public or private organizations interested in acquiring knowledge about Portuguese
hydrogen market, as Entrepreneurs, Consultants, Project Managers, and others;
_ Companies who are evaluating Portugal as a strategic location to set-up its hydrogen operations.
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SAMPLE

Intro
Executive Summary
Investing in Green Hydrogen in Portugal
Facing a world of continuous overlapping disruptions and rising uncertainty, hydrogen has
gained traction in government strategies, business plans and the media for its potential to
reaching net zero.
Portugal assumed the objective of achieving Carbon Neutrality by 2050. Portugal presents very favorable and competitive conditions to
produce green hydrogen and for the development of hydrogen-based zero-emission value chains for the domestic market and for
export. Portugal has favorable geographical location, high and increasing penetration of renewables in its electrical system, competence
of its industrial sector, excellence of its human resources in the engineering area, competitive advantage in terms of the production of
renewable electricity at low cost, and a modern gas infrastructure. In 2030, Portugal will be one of the seven countries that will contain
bidding zones at or above the 90% share of renewables, according to delegated act for the production of renewable fuels of nonbiological
origin (RFNBO), meaning that will be an early exporter of renewable hydrogen.
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Political, legal and environmental aspects
Hydrogen law, regulations & strategy in
Portugal
Ordinance No. 15/2023, of January 4 | rules for the first renewable gas
auction, with 10-year contracts
It establishes the system for the centralized purchase of
biomethane, and hydrogen produced by electrolysis from
water, using electricity from renewable energy sources.
By May 2023, the DGEG must prepare the parts of the
contracting procedure, while the tender notice must be
published by June 30th. This auction will contract two
types of renewable gases with prices and different
volumes:
_ Biomethane: 150 GWh/year (maximum price: €62/MWh)
_ Hydrogen: 120 GWh/year, i.e., 3.045 ton./year (maximum
price: €127/MWh)
The tender could be divided into lots and predicts supply
contracts for 10 years from the date of first supply.
The purchaser of these renewable gases will be the Last
Resort Supplier (CURg), the Galp group, which will also
assume the costs of network access tariffs (e,g,, injection
of renewable gases).
This auction arises to guarantee the advancement of
projects that allow Portugal to incorporate renewable
sources in gas consumption (e.g., art. 9, of Decree-Law 30-
A/2022, of April 18).
€ 5.01/kg
Maximum price for
Hydrogen, using HHV
of 39.41 kWh/kg
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Economic aspects
Market, Economics and Project Financing
Hydrogen and its derivatives | competition in Portugal
Number of prior registration to produce renewable gases, by business
model and gas type
Competition location (red dots)
Business model
Autocomsuption
Autocomsuption/ electricity production
Industry
Partial injection into the grid / industry
Partial injection into the grid / mobility
Partial injection into the grid / mobility / industry
Injection into the grid
Mobility
Mobility / industry
Electricity production
Electricity production / mobility / industry
Industry and transports
Total
Gas type
Hydrogen
Biomethane
Hydrogen/biomethane
Total
# prior registration
# prior registration
Until 2022/12/12, in Portugal, there are
xx prior registration with DGEG in
order to obtain the licensing and
authorization to start the production
of renewable gases.
Hydrogen is leading the licensing
process, with xx prior registration.
In terms of use, the preferential
business models are:
_ A
_ B
_C
Most of the projects are in the local 1
and local 2 of Portugal.
Source(s): DGEG, December 2022.
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This sample is not
complete
The study can be customized
For more information:
https://streamconsulting.pt/en/energy/energy-market-research
E-mail:
market_research@streamconsulting.pt
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