Portugal has secured a significant position in the global hydrogen landscape, with five designated hydrogen valleys that span the entire value chain of green hydrogen projects.

This achievement places Portugal in third position worldwide, sharing the podium with Spain and Norway, behind France and Germany.

According to Jornal de Negócios, out of the 80 hydrogen valleys worldwide, Europe boasts 60, while North and Latin America, Asia-Pacific, and the Middle East and Africa account for the remaining clusters. Portugal’s five hydrogen valleys serve as strategic zones for the development of projects related to the production, distribution, and consumption of renewable hydrogen.

Among the global hydrogen valleys, only 6% are currently operational, with 13% still under construction. In Europe, one project began production in 2022, and five more are planned for 2023, four for 2024, and 13 for 2025. Challenges related to funding and licensing processes have been identified as major obstacles to timely project implementation.

Once all 80 projects are fully operational, they are expected to attract an overall investment of €90 billion and generate a future production capacity of 8.5 million tonnes of hydrogen. The average cost of hydrogen production is projected to be around six euros per kilogram.

Of the five hydrogen valleys in Portugal, the Sines Hydrogen Valley stands out as the largest. With a projected investment pipeline of €22 billion by 2035, this valley alone accounts for approximately 10% of the country’s GDP. The other hydrogen valleys are located in Sines, the Leiria district (including Nazaré, Marinha Grande, Leiria, and Alcobaça), Vila Franca de Xira, and Oliveira do Bairro.

Portugal’s commitment to hydrogen development aligns with its efforts to transition to a low-carbon economy and reduce greenhouse gas emissions. Hydrogen is seen as a crucial element in achieving decarbonization targets, especially in sectors with high emissions such as transportation, industry, and heating. The establishment of hydrogen valleys not only promotes sustainable energy practices but also stimulates economic growth and job creation.

Portugal’s growing presence in the hydrogen sector reflects the country’s determination to leverage this clean energy source and position itself as a leader in the global energy transition. With continued investments and collaborative efforts, Portugal is poised to make significant strides in harnessing the potential of green hydrogen and driving the shift toward a more sustainable and carbon-neutral future.