PORTUGAL’S RENEWABLE AND

HYDROGEN STRATEGY

Lisbon, 22th April 2020

 PORTUGAL’S RENEWABLE AND HYDROGEN STRATEGY

INDEX
1. RENEWABLES IN PORTUGAL: A BRIEF OVERVIEW
2. THE ENERGY TRANSITION IN PORTUGAL
3. NATIONAL HYDROGEN STRATEGY: A BRIEF OVERVIEW
4. THE INDUSTRIAL H2 PRODUCTION PROJECT IN PORTUGAL
 PORTUGAL’S RENEWABLE AND HYDROGEN STRATEGY

PORTUGAL IS A LEADING COUNTRY IN RENEWABLE ENERGIES IN THE

EUROPEAN CONTEXT AND HAS ACHIEVED HIGH LEVELS OF RENEWABLE
PENETRATION

2018 EU position 2020 target

RES in Final Energy

consumption 30.3% 6th 31.0%
RES in the Electricity
sector 52.2% 5th 60.0%
RES in the Transport
sector 9.0% 5th 10.0%
RES in the Heating and
Cooling sector 41.2% 7th 35.9%

SOURCE: EUROSTAT
 PORTUGAL’S RENEWABLE AND HYDROGEN STRATEGY

PORTUGUESE LEADERSHIP IN RENEWABLE ENERGIES AND ESPECIALLY

NOTABLE IN THE ELECTRICITY SECTOR WITH VERY HIGHER INCORPORATION
LEVELS

▪ Currently more than 60% (14 GW) of the ▪ As an example, and among many others
installed capacity for the production of registered, on March 11, 2018, the daily
electricity is from renewable sources, representation of renewables in the
mainly hydro and wind. consumption registered a maximum of 143%.
 PORTUGAL’S RENEWABLE AND HYDROGEN STRATEGY

PORTUGAL IS COMMITTED TO ACHIEVE THE OBJECTIVE OF CARBON

NEUTRALITY IN 2050

▪ In order to achieve the goal of carbon neutrality GHG reduction trajectory in the 2050 horizon (Source: RNC 2050)

in 2050, it will be necessary to comply with a

trajectory that leads to a reduction of 85% to
90% in GHG emissions by 2050;
▪ The evolution of emissions on different paths of
neutrality points to a very significant
decarbonization of the national economy
already in the 2030 horizon;
▪ Achieving carbon neutrality means betting on a
combination of different technologies and
Sectoral targets for GHG reduction in the 2030 horizon (Fonte: PNEC 2030 / RNC 2050)
energy vectors;
▪ Portugal approved the Roadmap for Carbon
Neutrality (RNC 2050), adopted by RCM nº
107/2019, of 1 July.
 PORTUGAL’S RENEWABLE AND HYDROGEN STRATEGY

THE PNEC 2030 DEFINES THE POLICIES AND MEASURES FOR THE NEXT
DECADE TO ACHIEVE CARBON NEUTRALITY IN 2050

STRATEGIC VISION NATIONAL ENERGY AND CLIMATE PLAN 2021-2030 (PNEC 2030)
“Promote the decarbonisation of the economy and the energy transition, aiming at
carbon neutrality in 2050, as an opportunity for the country, based on a democratic and
fair model of territorial cohesion that promotes the generation of wealth and efficient use
of resources”

2030 TARGETS

-45% a -55% 35% 47% 20% 15%

EMISSIONS ENERGY RENEWABLES RENEWABLES IN ELECTRIC
(sem LULUCF, em relação a 2005) EFFICIENCY IN FINAL ENERGY CONSUPTION TRANSPORT INTERCONNECTIONS

80%
RES IN ELECTRICITY
 PORTUGAL’S RENEWABLE AND HYDROGEN STRATEGY

COMPARING PORTUGAL’S DRAFT PNEC 2030, PRESENTED AT THE END OF

2018, WITH THE FINAL VERSION, PRESENTED AT THE END OF 2019, GREEN
HYDROGEN WAS MISSING LINK IN OUR ENERGY STRATEGY
▪ Currently, the consumption and production of H2 in CONTRIBUTES TO MEET EU AND NATIONAL
Portugal is exclusive to the Refining industry and is ENERGY-CLIMATE TARGETS

produced from Natural Gas; REDUCES EU AND NATIONAL IMPORTS AND

ENERGY DEPENDENCY
▪ The energy transition will only be possible through a
DECARBONIZES INDUSTRY (ex.: Refinaries,
combination of various technologies and energy Steel industry )
vectors, including H2;
PROMOTES INNOVATION, RESEARCH AND
▪ The role and importance of H2 is fully recognized in our DEVELOPMENT

final version of our PNEC 2030

▪ H2 is the energy carrier that increases the economic H2 DECARBONIZES TRANSPORT (Road freight
and passenger, Rail, Maritime)

PROMOTES NEW USES FOR NATURAL GAS

value of electricity produced from RES providing INFRASTRUCTURES
further incentives for investment in renewables; DYNAMIZES NEW INDUSTRY AND SERVICES
▪ Provides long-term storage solution for renewable DECARBONIZES HEATING (injection into the
energy, paving the way for a full and secure natural gas grid)

decarbonized power system; POSITIONS THE EU AS A GREEN HYDROGEN

PRODUCER
▪ Avoids stranded assets in the energy sector (natural
CONTRIBUTES TO EU AND NATIONAL
gas transport and distribution infrastructure); SECURITY OF SUPPLY (e.g.: Storage)
▪ Facilitates decarbonization of industry and transport;
 PORTUGAL’S RENEWABLE AND HYDROGEN STRATEGY

The Government is promoting an industrial policy around

hydrogen and renewable gases, which is based on the
definition of a set of public policies that guide, coordinate
and mobilize public and private investment in projects in the
areas of production, storage, transport and consumption of
renewable gases in Portugal.
 PORTUGAL’S RENEWABLE AND HYDROGEN STRATEGY

THE COST OF ELECTRICITY PRODUCTION IN PORTUGAL IS THE COUNTRY'S

MAIN “VISIT CARD” TO PROMOTE A GREEN H2 PRODUCTION INDUSTRY

▪ Hydrogen will be produced essentially via

electrolysis using electricity;
▪ The cost of electricity represents most of the
cost of producing Hydrogen, followed by the
cost of capital;
▪ Hydrogen production is considered competitive
with electricity prices of around 25 €/MWh;
▪ Portugal has a competitive advantage over the
other countries because it has lower electricity
production costs;
▪ The auction held in July 2019 reached the
lowest tariff ever recorded worldwide (14.76 2019 PHOTOVOLTAIC SOLAR AUCTION LOWEST
€/MWh) and an average tariff of 20.33 €/MWh. TARIFF

14,76 €/MWh
 PORTUGAL’S RENEWABLE AND HYDROGEN STRATEGY

PORTUGAL IS DRAFTING A NATIONAL STRATEGY FOR HYDROGEN THAT

WILL CONTRIBUTE TO NATIONAL AND EU DECARBONIZATION OBJECTIVES

▪ The main objective is to introduce an element of incentive and

stability for the energy sector, promoting the gradual
introduction of hydrogen as a sustainable and integrated pillar
in a more comprehensive strategy of transition to a
decarbonized economy, as well as a strategic opportunity for
the country;
▪ Gives the framework for the current and future role of
hydrogen in the energy system and proposes a set of measures
and targets for incorporating hydrogen in the various sectors of
the economy;
▪ Gives a framework and a short-term vision to all companies
and promoters with Hydrogen projects in progress or in the
project phase, allowing to consolidate these projects in a
broader strategy that will enable new synergies and envisage
support.
▪ THIS STRATEGY AIMS TO PROMOTE AND BOOST BOTH SUPPLY
AND DEMAND IN THE VARIOUS SECTORS OF THE ECONOMY,
CREATING THE NECESSARY CONDITIONS FOR A TRUE
HYDROGEN ECONOMY IN PORTUGAL.
 PORTUGAL’S RENEWABLE AND HYDROGEN STRATEGY

THE FRAMEWORK OF POLICIES AND ACTION MEASURES TO BE ADOPTED

(LEGISLATION AND REGULATION, PROMOTION OF R&D, SUPPORT TO
PROJECTS AND NEW TECHNOLOGIES) WILL TAKE INTO ACCOUNT THE
VARIOUS PHASES OF THE H2 VALUE CHAIN
The action measures proposed under this strategy are aimed at:
▪ Prepare the legislation, regulation and normative framework
that allows for the promotion if this new paradigm in
Portugal;
▪ Constitute a work base to create momentum on a national
scale, mainly based on priority H2 value chains, considering
hydrogen both as an energy vector and as a product;
▪ Promote, develop and monitor projects, in different sectors
and scales, taking into account national priority value chains,
technological maturity, the reduction of costs and
enhancement of renewable energy sources;
▪ Streamlining innovative projects;
▪ Make profitable the stock of assets existing in the energy
system and in the national industry;
▪ Strengthen national competencies and R&I, promote
cooperation and support innovation associated with
hydrogen.
 PORTUGAL’S RENEWABLE AND HYDROGEN STRATEGY

ONE OF THE MAIN OBJECTIVES OF THIS STRATEGY IS TO PROMOTE BOTH

THE SUPPLY AND THE DEMAND SIDE IN THE VARIOUS SECTORS OF THE
ECONOMY
▪ To ensure the demand side the Strategy will set ambitious but realistic
targets for the incorporation of hydrogen in the various sectors,
compatible with the current and future investment capacity and with
the availability of technological solutions capable of ensuring the
desired levels of incorporation;
▪ The objective is to ensure in the long term (2050) a total (or close)
decarbonization of the entire Natural Gas network and of the Power
Plants, and contribute significantly to the decarbonization of the
transport and industry sectors;
▪ In addition to the targets for incorporating hydrogen, the Strategy will
also set other objectives that reveal the ambition of this strategy such
as (i) installed capacity for H2 production; (ii) number of H2 vehicles
(passengers and goods), (iii) H2 filling stations, (iv) national production
capacity of electrolyzes, among others relevant;
▪ The final assessment and definition of the targets and objectives will
benefit from a joint discussion with the relevant stakeholders (TSO,
DSOs, main industry players, transport players, among others) prior to
the public consultation, to ensure the proper alignment between the
objectives of this Strategy and the expectations of the stakeholders.
 PORTUGAL’S RENEWABLE AND HYDROGEN STRATEGY

THE IMPLEMENTATION OF A LARGE ANCHOR PROJECT ON AN INDUSTRIAL

SCALE FOR THE PRODUCTION OF GREEN HYDROGEN IS ESSENTIAL TO
CREATE A HYDROGEN ECONOMY IN PORTUGAL
▪ Portugal presents very favorable conditions for the installation of an H2 industry, namely in Sines;
▪ Will also be leveraged by a set of other resources already existing in Sines, ranging from the availability
of qualified staff to the availability of existing infrastructures;
▪ The H2 produced in Sines will be directed in 3 ways: (i) direct injection into the natural gas networks, (ii)
distribution by road transport to final consumers and (iii) export via the Sines terminal.
▪ In a first phase, given the initial size of the project, the hydrogen produced in Sines will be fully
absorbed by the national market.
 PORTUGAL’S RENEWABLE AND HYDROGEN STRATEGY

SINES H2 PRODUCTION PROJECT IS FOCUSED ON LEVERING SOLAR ENERGY

AS A FACTOR OF COMPETITIVENESS, INDUSTRIAL TRANSFORMATION AND
OPPORTUNITY TO MEET EUROPE H2 DEMAND

1 GW PRODUCTION OF >2850 M€ ESTIMATED PRODUCTION OF 35 - 175 SOCIAL & ECONOMIC

GREEN H2 INVESTMENT kton H2/year(1) GROWTH

▪ Position Portugal as an ▪ 1 GW electrolyser until ▪ Production varies ▪ Job creation and

exporter of green H2, in 2030; according to the profile requalification;
particular to the ▪ Solar photovoltaic and of eletricity generation ▪ Value and wealth
Netherlands (through Wind for electricity (2000 – 8750 h/year); creation;
the Port of Rotterdam); production (self- ▪ Consumption of 0,3 - 1,7 ▪ Promotion of new R&D
▪ Promote H2 industry consumption regime). Mm3 of water/year áreas and skills.
boosting its ▪ Electrolyser Factory directly from the sea(3).
consumption.
▪ Collaborative Laboratory

(1) Preliminar assessement. Assuming 55 kWh/kg H2 (Source: DGEG); (2) Process of direct use of seawater still under development on a commercial scale.
 PORTUGAL’S RENEWABLE AND HYDROGEN STRATEGY

THE PORTUGUESE GOVERNMENT IS ALREADY WORKING TO CREATE THE

NECESSARY CONDITIONS AND MECHANISMS THAT RECOGNIZE AND VALUE
HYDROGEN IN THE NATIONAL MARKET

1.
PROMOTE THE PRODUCTION
OF GREEN HYDROGEN
▪ Start the dialogue with
investors and market
players in order to find the
cost-effective solution to
implement in Portugal;
▪ Support in coordinating
the companies interested
in the installation of a
green hydrogen industry
project.
2. 3.
ENSURE INTERNAL AND IMPLEMENT POLICIES AND
EXTERNAL DEMAND MECHANISMS
▪ Create the conditions for ▪ Regulate the injection of
the emergence of an renewable gases into the
internal and external network;
market for H2; ▪ Definition of a Strategy for
▪ Partner with the Hydrogen in Portugal;
Government of the ▪ Study and set targets for
Netherlands, and other the incorporation of
Member States, to export renewable gases;
green H2.
▪ Implement a system of
guarantees of origin for
renewable gases.
 PORTUGAL’S RENEWABLE AND HYDROGEN STRATEGY

NEXT STEPS - PRELIMINARY DATES

▪ NATIONAL POLICY
▪ Legislative changes for the injection of Renewable Gases (ongoing – May/June 2020);
▪ Presentation, discussion and approval of the Hydrogen Strategy in Portugal (ongoing,
May/July 2020).

▪ H2 SINES PROJECT
▪ Project analysis covering all elements of the value chain of Green Hydrogen project
(ongoing, April/May 2020);
▪ Dialogue and formalization of the Portugal-Netherlands partnership (ongoing,
April/June 2020);
▪ Preparation and submission of IPCEI application (ongoing, April/May 2020);
▪ Model definition and constitution of the H2 Collaborative Lab (during 2020)
▪ Beginning of the implementation of the H2 Industrial Project in Sines (jan. 2021)
THANK YOU FOR YOUR
ATTENTION!

jeronimo.cunha@maac.gov.pt