Lisbon now aims to install 5.5GW of electrolysers by the end of the decade, up from 2.5GW
Portugal has increased its 2030 green hydrogen production target to 5.5GW, according to its updated draft National Energy and Climate Plan (NECP), which was submitted to the European Commission (EC) on Friday.
The nation had previously planned for 2.5GW of electrolysers to be installed by 2030 under its 2021 National Hydrogen Plan, which will now be revised.
According to a government statement, Portugal plans to use this renewable H2 to decarbonise existing uses of grey hydrogen, “attract new industries that produce derivatives of green hydrogen”, and to export renewable H2 to the rest of the EU, including via the planned H2Med hydrogen pipeline network.
In early January, the country announced plans for a national green hydrogen tender, in which a new government body, known as the Last Resort Wholesale Trader, will buy renewable H2 for a maximum price of €127 per MWh (about $5.45/kg based on HHV), and then sell it on to the lowest bidder.
As part of this, natural-gas suppliers will be obliged to replace at least 1% of the volume of their natural gas with green hydrogen or biomethane.
All 27 EU member states were supposed to submit their draft update NECP plans by Friday last week. The EC will then recommend improvements to the plans, which the EU governments will have to incorporate into newly updated documents, before public consultations are carried out on those plans. Final revisions of the NECPs are due to be published in June 2024.
