As the European Union intensifies its transition toward a carbon-neutral economy, Portugal is increasingly being seen as a future key supplier of green hydrogen (H₂) to the continent. With vast renewable resources, strategic geographic positioning, and a growing portfolio of clean energy projects, Portugal is aligning its industrial strategy with the EU’s broader decarbonization goals and positioning itself as a core player in the emerging hydrogen economy.
At the center of this ambition is the country’s commitment to green hydrogen, produced through electrolysis powered by renewable energy sources such as solar and wind. Unlike grey or blue hydrogen, which depend on fossil fuels, green hydrogen offers a zero-emission pathway to decarbonize hard-to-electrify sectors like heavy industry, aviation, maritime transport, and large-scale energy storage. In this context, Portugal’s natural assets and innovation capacity provide a clear advantage.
One of the most prominent projects under development is the MadoquaPower2X initiative, located in the industrial and logistics zone of Sines, on the southwestern coast. Often described as the foundation of Portugal’s future “hydrogen valley,” this project will involve the construction of two large-scale facilities, one for producing green hydrogen and another for synthesizing green ammonia. Backed by a Portuguese, Dutch Danish consortium, the project will represent an investment of €2.8 billion, with construction set to begin in 2027 and full operation expected by 2029. Once online, it will serve both domestic consumption and export, particularly to Northern Europe, where clean fuel demand is set to skyrocket in the coming decades.
Simultaneously, other projects are reinforcing this momentum. In Castelo Branco, a green hydrogen production facility is being developed as part of a partnership between a Portuguese renewable energy group and a Chinese clean energy leader. With a 25 MW solar park and 10 MW of electrolysis capacity, the site aims to produce 900 tons of green hydrogen annually, which will be injected into the H2Med corridor a new trans-European pipeline project that will connect the Iberian Peninsula to France and Germany. This pipeline is designed to transport renewable hydrogen across borders, helping the EU meet its ambitious climate targets while improving energy security.
Portugal’s leadership in this space is underpinned by more than geography and solar hours. The country has developed a robust renewables ecosystem, with decades of experience in wind, hydro, and solar power. Portuguese engineers, universities, and energy companies have accumulated deep expertise in clean energy technologies and project development. This expertise is now being extended to green hydrogen, a newer and less mature sector that offers massive potential.
Moreover, international partnerships are bringing the capital and technological scale needed to execute such large-scale projects. The involvement of Chinese and European investors, alongside Portuguese firms, reflects the global confidence in Portugal as a stable, future-ready base for energy infrastructure. These collaborations also help accelerate the timeline for hydrogen production and export by combining local knowledge with advanced technologies and financing capabilities.
Beyond hydrogen, Portugal is also making strides in biomethane, an often-overlooked component of the green transition. Several initiatives are underway to use agricultural, municipal, and industrial waste to produce biomethane, a renewable gas that can be fed directly into the national gas network. These complementary efforts further solidify Portugal’s role as a diversified and adaptable clean energy provider.
Crucially, these developments are not just about meeting Portugal’s domestic energy needs. They are about offering solutions to Europe’s growing energy and climate challenges. As countries across the continent reduce their reliance on fossil fuels and search for scalable, sustainable alternatives, Portugal is positioning itself as both a supplier and an innovation hub for clean fuels.
With projects under construction, more in the pipeline, and supportive government and EU policy frameworks in place, Portugal is well on its way to becoming a green energy gateway for Europe. If current momentum continues, the country could, by the early 2030s, be a significant exporter of green hydrogen and related technologies — helping power Europe’s industries and cities with clean, locally produced energy.
In a world increasingly shaped by climate action and energy resilience, Portugal is proving that size is no limitation when backed by vision, talent, and long-term strategy. The green hydrogen revolution may just have one of its strongest launch pads in this Atlantic nation.
Paulo Lopes is a multi-talent Portuguese citizen who made his Master of Economics in Switzerland and studied law at Lusófona in Lisbon – CEO of Casaiberia in Lisbon and Algarve.
Paulo Lopes
