The Iberian Peninsula is becoming Europe’s most important green hydrogen hub

The Pyrenees Peninsula is becoming one of the most important centers for green hydrogen production worldwide. In fact, the fourth large-scale project has now been approved, which shows the dominance of both countries vis-à-vis Europe in this matter.

The project will increase the importance of the port of Sines.


Numerous investments have been made in the Pyrenees, which have made it possible to turn it into a major energy player. In addition to the path taken to become a hub for green hydrogen production, these investments have also increased renewable energy, giving it more and more strength and importance.

A new investment has now emerged, led by three companies. This will raise € 1 billion to provide 500 MW of infrastructure to be installed in the port of Sines in Setúbal County. Alongside the Portuguese Madoqua will be Copenhagen Infrastructure Partners and the Dutch consulting company Power2X.

This partnership will generate 500 MW of electrolysis infrastructure capable of producing 50,000 tonnes of green hydrogen and 500,000 tonnes of green ammonia per year. The energy needed for a project of this size comes from renewable energy plants under development in Portugal, such as wind and solar parks.

The port of Sines in Portugal, on the Iberian Peninsula

Port of Sines in the county of Setúbal, Portugal

The green hydrogen produced by the project will be used in local industry and processed to produce green ammonia for export from the port of Sines.

The companies involved hope that the structure will be fully licensed by the end of next year and that it will be possible to start construction. Production is expected to begin by 2025. In addition, there is an opportunity on the table to expand the project to one million tons of green ammonia.

The Iberian Peninsula brings together stakeholders in the production of green hydrogen

This is the second large-scale green hydrogen project announced by Copenhagen Infrastructure Partners this year on the Iberian Peninsula. After all, they had already unveiled the Catalina project, which will deploy 5 GW of renewable energy and 2 GW of catalysts between Aragon and Valencia, including companies such as Enagás, Naturgy, Fertiberia and Vestas.

In addition, the HyDeal Spain hydrogen project with an electrolysis capacity of 7.4 GW was announced in February. Previously, a 2 GW plan led by Repsol had already been announced in northern Spain.

According to experts, the growing interest in the construction of green hydrogen infrastructure in the Pyrenees is due to the potential of Portugal and Spain to produce solar and wind energy. This allows countries to produce green hydrogen cheaper than other European countries.

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