The European country intends to launch a pioneering auction.
To reduce greenhouse gas emissions in the nation, Portugal recently announced that it would launch a hydrogen auction in the second half of 2023 to sell H2 for injection into the country’s natural gas grid.
This is the first auction of hydrogen in Europe.
Ambitious targets have been set by the Portuguese government to lower the country’s emissions by 2030. In support of achieving these goals, Portugal is now looking to green hydrogen. Green H2, or renewable hydrogen, a common topic covered at Hydrogen Fuel News, is the cleanest hydrogen production method, which uses renewable sources of power, such as wind and solar, to produce the fuel.
The hydrogen auction, which will be managed by a new government body called Gás Natural de Portugal (GNP), will purchase green hydrogen and biomethane at auction. From there, it will sell it to gas companies to be injected into the natural gas grid, where it can replace fossil fuels such as natural gas and coal.
The objective is to increase the amount of renewable hydrogen in the natural gas grid from the current 1% to 10% by 2030.
Portugal is confident the hydrogen auction will help the country reach its GHG emissions reduction goal.
According to GNP representative, Gabriel Sousa, the hydrogen auction is an important step toward meeting Portugal’s climate objectives.
“We are confident that this auction will help us reach our goal of reducing emissions while also providing economic benefits for businesses,” said Sousa.
That being said, hydrogen blending is not without its challenges. There are limitations on how much hydrogen can be injected and blended into the existing gas grid without risking explosions, other accidents or issues. Moreover, presently, regulations and standards are lacking to govern how much H2 should be blended into the grid or how the fuel should be safely stored.
In spite of these challenges, Portugal’s hydrogen auction is expected to benefit businesses in the nation and help it reach its climate targets. This also isn’t the first step the country has taken toward increasing its use of renewable hydrogen. It has also invested in research and development projects focused on electrolysis technology. Additionally, the nation takes part in H2 initiatives, including H2Global to facilitate e-methanol, renewable ammonia and sustainable aviation fuel imports through auctions.
