Page 13 - EurOil Week 23 2021

EurOil ENERGY TRANSITION EurOil

Galp, EDP withdraw from

Portuguese hydrogen plan

PORTUGAL PORTUGUESE energy companies Galp and in the project, France’s Engie, Portugal’s REN
EDP have backed out of plans to develop a green and Denmark’s Vestas, have said they will with-
While pushing ahead hydrogen hub in the port city of Sines, stating draw. Galp also added that it could still take part
with hydrogen, Portugal they want to focus on other clean energy invest- in other government-backed hydrogen initia-
is also keen to continue ments elsewhere. tives in Portugal.
supporting natural gas. Like many European countries, Portu-
gal unveiled a national hydrogen strategy last Let the gas flow
year that heavily prioritised the development While pushing ahead with hydrogen, Portugal is
of so-called green hydrogen, produced from also keen to continue supporting natural gas as a
water with an electrolyser, powered by renew- means of reducing its emissions while maintain-
able energy. Portugal, well-endowed with solar ing safe and secure energy supply.
resources, announced it would invest $7bn As reported by NewsBase last week, Ger-
in green hydrogen production over the next many and 10 other EU countriess are pushing for
decade. natural gas infrastructure to be excluded from
The lynchpin in this plan is H2Sines, which the bloc’s list of projects of common interest
aims to establish up to 1 GW of hydrogen pro- (PCI), which enjoy grants and eased permitting
duction capacity. Some of this hydrogen would requirements. This is in line with a European
be used to decarbonise local industry, while the Commission proposal made last year, which is
rest would be exported to the Netherlands. yet to be approved by the European Parliament
Galp and EDP committed to the project last or by EU member states.
year, although they have since got cold feet. As European Council chair, Portugal has
“We’re stepping out of H2Sines, the consor- drafted its own proposal that would keep the
tium that was planning to deliver this liquefied door open to investment in gas pipelines until
hydrogen to the Netherlands,” Galp CEO Andy the end of the decade. The draft calls for projects
Brown said at the company’s capital markets day in Malta and Cyprus that currently have PCI sta-
presentation. He said Galp would shift its atten- tus to retain it until those countries are fully con-
tion to decarbonising its refinery in Sines, which nected to the European gas network. This would
already produces grey hydrogen, derived from help ensure the completion of the EastMed
hydrocarbons without any CO2 abatement. pipeline, set to carry gas from fields off Israel and
EDP meanwhile noted that “its future green Cyprus to Europe. The countries involved in the
hydrogen investments should be directed at project aim to take a final investment decision
other projects.” (FID) in 2022 and launch the pipeline three years
As of press time, none of the other investors later. ™

Week 23 10•June•2021 www. NEWSBASE .com P13