Madoqua and Power2X Associate to Produce Hydrogen and Ammonia
Madoqua Renewables (Madoqua), a Portuguese project developer, has announced a partnership with Power2X (Power2X), a Dutch energy transition project developer and consultancy, and Copenhagen Infrastructure Partners' Energy Transition Fund (CIP) to build MadoquaPower2X, a €1 billion industrial-scale project in Sines, Portugal, that will create 200+ direct and indirect jobs.
MadoquaPower2X will run on renewable energy and have a capacity of 500 megawatts of electrolysis. It is the first project at Sines' future energy hub, with an annual production capacity of 50,000 tonnes of green hydrogen and 500,000 tonnes of green ammonia.
Furthermore, this is an early example of a new energy transition model, with Portugal as a pioneer.
The H2 produced by this project can be used in local industry or converted into green ammonia for export via the Sines port terminal.
Electricity will be derived from renewable power generated in Portugal, including renewable energy communities for wind and solar facilities that are being built concurrently.
The project is now in the planning stages and should be permitted and ready for a final investment decision by 2023. Following that, building will begin, with the first hydrogen production expected by the middle of the decade.
MadoquaPower2X is expected to contribute significantly to Portugal's national hydrogen policy by 2030. The project, in particular, will generate about a quarter of Portugal's planned two-gigawatt electrolyser capacity by 2030.
Furthermore, the project will contribute ten to fifteen per cent of Portugal's hydrogen investment targets, with a €1 billion investment. MadoquaPower2X could also achieve 100% of Portugal's gas grid hydrogen injection targets if desired over ammonia production.
The consortium members are talking to stakeholders about expanding the project to create 1 million tonnes of green ammonia per year, which would reduce CO2 emissions by 1 million tonnes per year. The following phases will begin construction in 2024, with final commissioning expected by 2030.
Philip Christiani, Partner at CIP, said “Sines provides an excellent location for this project – proximity to local heavy industry, an existing export terminal and the political will demonstrated by Portugal to be a key green hydrogen leader in Europe. We look forward to working with our consortium partners to bring MadoquaPower2X to life.”
