Portugal green hydrogen pipeline thins as few projects near launch
Only about a quarter of Portugal’s green hydrogen projects have been cleared to proceed, with a handful nearing start-up as developers wait for clearer rules and support.
Only about a quarter of the 142 green hydrogen projects submitted in Portugal have been cleared to move forward, according to ECO’s review of data from the Directorate-General for Energy and Geology, highlighting how slowly a sector seen as important for industrial decarbonisation is advancing. While some projects are expected to start production by the end of this year or in the coming months, most have been cancelled, rejected or allowed to lapse.
The most advanced projects include Gestene’s development in Seixal and Repsol’s H2Alba in Sines, which the company said received the operating authorisation for its electrolyser on July 10. Repsol said production is due to begin “in the coming months”. Galp also said its 100-megawatt H2 Park in Sines should start producing by year-end, replacing about 20% of the hydrogen currently used at the refinery that is made from natural gas.
Other projects are further behind despite having permits. Madoqua Renewables said its MP2X green ammonia project in Sines is at an advanced stage of development and is being positioned for a final investment decision, after more than €100 million has already been spent on development. RegaEnergy said its Nazaré Green Hydrogen Valley is fully licensed and ready to build but still lacks a final investment decision, citing regulatory uncertainty, weak market conditions and high production and infrastructure costs. Cimpor and Hyperion Renewables also said their projects remain under technical, economic or market review.
The article points to a broader slowdown in momentum. Floene, Portugal’s largest gas distributor, said it has received 156 grid connection requests for green hydrogen injection over the past six years, but that demand has slowed in 2026 and that biomethane has recently overtaken hydrogen in project enquiries. Companies and sector specialists told ECO that more stable regulation, stronger demand signals and investment incentives will be needed if more Portuguese hydrogen projects are to become commercially viable.
Originally published at Eco.pt