Portugal has released details of its planned competitive tender for the purchase of green hydrogen and biomethane for injection into the gas grid.

The government will award ten-year contracts for 120GWh/yr of hydrogen, set at a base price of €127/MWh ($134.8/GWh/yr), to producers via wholesale suppliers of last resort, who will be able to resell the gases and associated guarantees of origin.

Portugal passed a requirement last year for gas suppliers that have a final customer demand in excess of 2,000GWh/yr to blend at least 1pc of their natural gas with biomethane or green hydrogen.

€127/MWh – Base price for hydrogen

Although Portugal imports all of its natural gas, the country is expected to be a leading green hydrogen producer in Europe owing to ample wind and solar resources.

Portugal has also partnered with France and Spain on a potential 2mn t/yr hydrogen pipeline between the three nations, with the project seeking state funding under the EU’s Important Project of Common European Interest scheme.

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Author: Polly Martin