Coming as the company’s first offtake agreement aimed at blending hydrogen in the Portuguese natural gas grid, the agreement is hoped to support the country’s decarbonisation goals.
H2 View understands hydrogen produced at Fusion Fuel’s 40-tonne per annum GreenGas project in Evora, which is expected commissioned in 2023, will initially be blended.
Under the agreement, Dourogás will be able to use the hydrogen in its domestic, industrial, and natural gas for vehicles (NGV) mobility segments, supporting its own commitments to the energy transition.
“This is a critical milestone in the development of the green hydrogen economy in Portugal,” said Pedro Caçorino Dias, Head of Portugal at Fusion Fuel. “Our agreement with Dourogás is the first large-scale green hydrogen offtake contract in Portugal to date, and a concrete commitment by players across the value chain to establish a liquid market for green hydrogen.”
Under Portugal’s 2020 national hydrogen strategy, the country set out the target of blending 15% hydrogen into its natural gas distribution network, as well as 2GW of electrolyser capacity by 2030.
Nuno Moreira, CEO of Duorogás Group, commented, “This is an important agreement for the Dourogás Group since it represents a step forward in its mission to provide clean energy to and within Portugal. Dourogás has a public commitment to the decarbonisation of the economy through the production and promotion of renewable gases, including biomethane and green hydrogen, and the Fusion Fuel project is innovative and develops with this same purpose.”
In 2021, Dourogás and Lightsource bp inked an agreement to explore developing projects which could see green hydrogen injected into Portuguese gas grids.
Read more: Lightsource bp and Dourogás target Portugal with eight new green hydrogen sites
November 2022 saw Fusion Fuel commission what it said was Portugal’s ‘first’ integrated solar-to-green hydrogen plant, completing an interconnection into the country’s electric grid.
Read more: Fusion Fuel commissions Portugal’s ‘first’ integrated solar-to-green hydrogen plant
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