Fusion Fuel announced on 30 January that it has signed an off-take contract with Portuguese natural gas provider Dourogás, making this the first agreement of its kind for green hydrogen blending in the Portuguese natural gas network. In 2020, the Portuguese government’s national hydrogen strategy included the ambition to have 15% hydrogen blended in their gas distribution and 2 GW of electrolyzer capacity by 2030, both of which Fusion Fuel is helping to facilitate.
Green hydrogen produced from the Evora project, due for commission in 2023, is the first of its kind to be blended in Portugal. This project is anticipated to create 40 tonnes of green hydrogen per annum. With Dourogás as the market leader in domestic, industrial and mobility NGV, they are perfectly placed to use the green hydrogen generated by Fusion Fuel. Floene (previously known as Galp Gás Natural Distribuição) are working to develop the infrastructure necessary to support blending within the grid as part of their mission to promote the energy transition.
On January 25, Fusion Fuel welcomed the senior executives of Dourogás and Floene to its Benavente electrolyzer factory to formally mark the execution of the agreement. Pedro Caçorino Dias, Fusion Fuel’s Head of Portugal, shared his thoughts on the accomplishment: “This is a critical milestone in the development of the green hydrogen economy in Portugal. 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.
“Not only will this help us strengthen our footprint in the industrial decarbonization space, but it will also help lay the groundwork for Portugal achieve the aspirations it laid out over two years ago in its national hydrogen strategy. With its extensive service network and stated emphasis on sustainability and energy innovation, Dourogás is the ideal counterpart in this endeavour. We hope to continue to cultivate our partnership with Dourogás and explore further opportunities for collaboration, particularly in the area of hydrogen mobility.”
Nuno Moreira, CEO of Dourogás Group, affirmed: “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 decarbonization 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.
“Dourogás is the leading gas company in the national NGV mobility sector and this project aligns with our commitment to contribute towards Portugal’s decarbonization goals. Our action and operations remain set to support the decarbonization agenda of the national gas sector and economy, aligned with national and European policies.”