Portuguese project developer Madoqua Renewables (Madoqua) has announced a partnership with Dutch energy transition project developer and consultancy Power2X (Power2X), and Danish fund manager Copenhagen Infrastructure Partners’ Energy Transition Fund (CIP) to build MadoquaPower2X – a €1 billion industrial-scale project for the production of green hydrogen and ammonia in Sines, Portugal, creating 200+ direct and indirect jobs.
MadoquaPower2X will use renewable energy and 500 MW of electrolysis capacity. It is the first project to be installed at the future energy and technological hub of Sines, with an industrial-scale production of 50 000 tpy of green hydrogen, and 500 000 tpy of green ammonia.
This project is the first real step in the implementation of a new energy transition model, of which Portugal is an early mover, asserting itself as a relevant player in the new energy world order.
The hydrogen produced under this project can be used by the local industry as well as processed to create green ammonia for export from the terminal at port of Sines.
Electricity will be sourced from renewable power produced in Portugal, in particular from renewable energy communities for wind and solar plants that are being developed in parallel. This approach will ensure availability of dedicated renewable energy throughout the lifetime of the project.
The project is currently under development and is expected to be fully permitted and ready for a Final Investment Decision (FID) by the end of 2023, with construction to commence thereafter and first hydrogen production by the middle of the decade.
MadoquaPower2X, including future phases, will make significant contributions towards Portugal’s National Hydrogen Strategy (EN-H2) by 2030. In particular, the project will contribute nearly 25% of Portugal’s envisaged 2GW electrolyser capacity by 2030. The integrated hydrogen and ammonia project will, will generate 1000 (direct and indirect) jobs, including future phases, which equates to 10 – 12% of new job creation targets. Furthermore, at €1 billion of investment, the project will contribute 10 – 15% of Portugal’s hydrogen investment targets.
Additionally, if preferred over ammonia production, MadoquaPower2X could meet 100% of Portugal’s gas grid hydrogen injection targets. Lastly, as this project has the capacity to consume all locally produced hydrogen for ammonia production, it is proud to support the Sines green hydrogen loop initiative as one of the largest launching customers.
The consortium members are exploring opportunities with stakeholders to further expand the project to potentially produce 1 million tpy of green ammonia, reducing CO2 emissions by up to 1 million tpy. Subsequent phases will commence development in 2024, with full commissioning before 2030.