This is your 1 News posts out of 3 that you are entitled to as a guest.

Please sign up for one of our PREMIUM SUBSCRIPTIONS to continue your access to Global Energy Infrastructure.

Fusion Fuel Signs Offtake Agreement with Portuguese Gas Utility Dourogás

2/3/2023

On January 30, Fusion Fuel announced that the company has signed an offtake agreement with Portuguese natural gas utility Dourogás for green hydrogen produced from Fusion Fuel’s projects in Portugal. This represents Fusion Fuel’s first offtake contract aimed at blending green hydrogen within the Portuguese natural gas grid, and a first-of-its-kind agreement to support the Portuguese government in meeting its decarbonization objectives. Portugal’s national hydrogen strategy, adopted in 2020, laid out high-impact targets including a 15% blend of hydrogen in its natural gas distribution network and 2 GW of electrolyzer capacity by 2030.

The first hydrogen to be blended will be produced at Fusion Fuel’s GreenGas project in Evora. The facility is expected to be commissioned in 2023 and would produce roughly 40 tonnes of green hydrogen per annum. Dourogás will be able to use this hydrogen in its domestic, industrial and mobility NGV segments, sectors where the Dourogás Group is the market leader. Portugal's largest gas distribution network, Galp Gás Natural Distribuição – recently renamed Floene – is expected to build the infrastructure to enable blending in the grid as part of its broader commitment to the energy transition.

On January 25, Fusion Fuel welcomed the senior executives of Dourogás and Floene to its Benavente electrolyzer factory to formally mark the execution of the agreement. Pedro Caçorino Dias, Fusion Fuel’s Head of Portugal, shared his thoughts on the accomplishment: “This is a critical milestone in the development of the green hydrogen economy in Portugal. Our agreement with Dourogás is the first large-scale green hydrogen offtake contract in Portugal to date, and a concrete commitment by players across the value chain to establish a liquid market for green hydrogen. Not only will this help us strengthen our footprint in the industrial decarbonization space, but it will also help lay the groundwork for Portugal achieve the aspirations it laid out over two years ago in its national hydrogen strategy. With its extensive service network and stated emphasis on sustainability and energy innovation, Dourogás is the ideal counterpart in this endeavour. We hope to continue to cultivate our partnership with Dourogás and explore further opportunities for collaboration, particularly in the area of hydrogen mobility.”

Nuno Moreira, CEO of Dourogás Group, affirmed, “This is an important agreement for the Dourogás Group since it represents a step forward in its mission to provide clean energy to and within Portugal. Dourogás has a public commitment to the decarbonization of the economy through the production and promotion of renewable gases, including biomethane and green hydrogen, and the Fusion Fuel project is innovative and develops with this same purpose. Dourogás is the leading gas company in the national NGV mobility sector and this project aligns with our commitment to contribute towards Portugal’s decarbonization goals. Our action and operations remain set to support the decarbonization agenda of the national gas sector and economy, aligned with national and European policies.”