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HyChem has signed a contract with the Floene Group, represented by its concessionaire Lisboagás GDL, aiming to build a green hydrogen transportation pipeline, which will be injected into the gas distribution network of the Lisbon region (covering the municipalities of Lisbon, Amadora, Oeiras, Cascais, Mafra, Sintra, and Loures). HyChem's hydrogen production facility in Póvoa de Santa Iria will thus be connected to the national gas network.
The investment for this connection is around 4.7 million euros and includes, among other actions, the construction of 8.5 kilometers of pipeline to connect the hydrogen compression and storage unit to the gas network, with the reception point in Frielas (Loures).
After the network's construction, the distribution of hydrogen, which will be green and mixed with natural gas, is expected to begin in 2027. Nearly half a million domestic customers and around 1,300 industrial customers will be served. Being connected to the gas network, these consumers will be able to decarbonize part of their energy consumption without needing to replace their equipment.
With this connection and the values obtained in auctions, HyChem will be able to decarbonize around 30 GWh of energy per year starting in 2027. This is a concrete example of how synergies between companies can be exploited and how, through a gradual transition without the need for large-scale projects, firm steps can be taken towards carbon neutrality.
Due to the projected development in the renewable gas market (which includes not only green hydrogen but also biomethane), consumers will be able to reduce their emissions by around 90%, contributing to the achievement of national and international targets.
Manuel Gil Antunes, CEO of HyChem, emphasizes the significance of this substantial hydrogen project: “The importance of the investment our company is making to provide green hydrogen to end customers outside of its industrial park—an investment that totals around 10 million euros and is supported by the Recovery and Resilience Plan (PRR)—demonstrates how HyChem meets the imperative of sustainability and contributes to achieving the decarbonization goal that the country has committed to within the European framework.”
The project between HyChem and Floene is aligned with the National Hydrogen Strategy (EN-H2), which aims to position Portugal as a leader in the production and use of renewable hydrogen, contributing to the decarbonization of the economy. The EN-H2 establishes several goals for 2030, including injecting 10% to 15% of green hydrogen into natural gas networks and achieving 2% to 5% green hydrogen consumption in the industrial sector's energy use.