Green Hydrogen in Portugal: Strategic Pillar of the Energy Transition

In recent years, Portugal has established itself as one of the European countries with the greatest potential to lead the energy transition towards a decarbonized and sustainable model. In this context, green hydrogen emerges as a strategic pillar, capable of driving not only the decarbonization of the national economy but also the export of clean energy and the creation of new industrial value chains.

The National Hydrogen Strategy (EN-H2), approved in 2020, provides the guiding framework for this ambition, setting clear targets up to 2030 and 2050 and integrating Portugal into the main European energy corridors, such as the Green Energy Corridor for Central Europe.

Objectives of the National Hydrogen Strategy

EN-H2 establishes ambitious goals: by 2030, it is expected that 1.5% of Portugal’s final energy consumption will be supplied by renewable hydrogen, with an installed production capacity of 2 to 2.5 GW.

This plan goes beyond production, covering the entire value chain: from electrolysis to logistics, storage, distribution, and final use in hard-to-electrify sectors such as heavy industry, steel, long-distance transport, and maritime aviation.

It is a strategy based on an integrated vision, aligning public policies, private investment, and international cooperation.

Pioneering Projects

One of the most relevant projects is the introduction of green hydrogen into the natural gas network in Seixal. Developed by REN, in partnership with EDP and Galp, this pilot project tests the injection of renewable hydrogen into the existing infrastructure, assessing its technical compatibility and operational safety.

This is a fundamental step for the progressive decarbonization of the gas sector, enabling a smooth transition without abrupt disruptions and leveraging existing assets.

Portugal as a European Green Energy Hub

In parallel, Portugal plays a central role in the Green Energy Corridor for Central Europe, an initiative aimed at connecting countries with high renewable energy production potential, such as Portugal and Spain, to Europe’s major energy consumption centers.

This corridor will allow the export of green hydrogen produced in the south of the Iberian Peninsula through shared transport and storage infrastructures. Portugal’s participation reinforces its geostrategic position, transforming the country into a European energy hub, capable of supplying clean and competitive energy to partners such as Germany, France, and the Netherlands.

Natural Resources and Competitiveness

Portugal’s potential for green hydrogen production is truly exceptional. The country benefits from some of the lowest renewable electricity tariffs in Europe, thanks to the abundance of solar and wind resources.

• Wind energy, particularly along the northern coast and inland, offers high potential.
  
• Solar energy, especially in the Alentejo and Algarve regions, provides cheap and competitive electricity — a decisive factor for reducing hydrogen costs, which depend mainly on the price of electricity used in electrolysis.
  

The electrolysis process consists of splitting the water molecule (H₂O) into hydrogen (H₂) and oxygen (½O₂), using renewable electricity.

Additionally, Portugal’s Exclusive Economic Zone, the third largest in the European Union, offers unique opportunities for offshore renewable energy production, namely through floating wind farms that can directly power hydrogen production units.

Human Capital and Innovation

Portugal has a skilled and competitive workforce with a strong tradition in engineering, industry, and science. Universities and research centers such as INESC TEC, LNEG, and CEMMPRE are already involved in R&D projects on hydrogen, contributing to the development of national technologies and the training of specialists.

This human capital will be crucial to attracting foreign investment and ensuring that the added value of the hydrogen value chain remains, as much as possible, within national borders. It is estimated that tens of thousands of qualified jobs could be created in Portugal over the coming decades.

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