MadoquaPower2X announces increase in total investment from 1.3 billion to 2.8 billion euros to produce green hydrogen in Sines, Portugal

Lisbon – MadoquaPower2X (MP2X), a Portuguese, Danish and Dutch international consortium led by Madoqua Renewables, announces an increase in investment to 2.8 billion euros  for the Green Hydrogen and Ammonia production units in the Sines industrial zone. 

The MP2X project publicly announced on April 22, 2022, has already completed several important milestones in  its development and this positions the project as a highly mature project, duly recognized by the national  authorities. An additional €1.5 billion for Phase 2, to the already publicly announced €1.3 billion in investment to implement phase 1 of the project, thus making it the largest project in Europe, surpassing 1GW of green  hydrogen production capacity.

MP2X will continue to promote the circular value chain, lower CO2 emissions, reduce dependence on fossil fuels,  namely by reducing imports of natural gas, significantly boosting compliance with the national and European  objectives set out in the national (PNEC 2030) and European (REPowerEU) strategies for decarbonization and in  the national strategy for Hydrogen (EN-H2). The production of these green energy carriers, an activity classified  as "sustainable" according to the latest European Union taxonomy, will generate sustainable economic growth  and territorial cohesion for Portugal.  

CEO of aicep Global Parques, Isabel Caldeira Cardoso, the development of this investment reflects the ambitions  of the initial project, for which the promoters have already reserved 59 hectares of land in ZILS – Sines Industrial  and Logistics Zone, more than doubling the initial 25 hectares reserved in the initial phase. All national entities  are very committed to the success of MadoquaPower2X project, aware of its importance in contributing to the  inevitable energy transition. It's another exciting challenge for the aicep Global Parques team to welcome this PIN  - Project of National Interest in ZILS, which we have embraced from day one, because of its relevance to achieving  the goals of the 2030 agenda."

The consolidated strategic investment vision favors the creation of 265 highly qualified permanent jobs and 6,000  indirect jobs established through local partnerships and with academia from 2025 onwards. The project of  national interest allows Portugal to be a pioneer in implementing this type of projects and MP2X has been  officially recognized on 10th May 2023, as part of the "Hydrogen Valley" initiative led by the European  Commission through the Mission Innovation and Clean Hydrogen Partnership. 

Non-Executive Director of MadoquaPower2X, Marloes Ras, stresses on the ambition of the project, based on an eight-year strategic development plan, and points out that "the first phase of the project alone already  corresponds to 20% of Portugal's national targets in the context of green hydrogen production at European level.  The project continues to be an essential element of the producer segment to feed into the Northwest Europe Hub  energy receiver segment of the value chain”. 

The Non-Executive Director of MadoquaPower2X, Marloes Ras, highlights the ambition of the project based on  an eight-year strategic plan, and recalls that "the first phase of the project alone already corresponds to 20% of  the Portuguese targets in the context of European green hydrogen production. MP2X is essential to contribute  to the European autonomy in terms of energy and food (fertiliser) value chains through the consumption and  production of hydrogen and commercialisation of Green Ammonia". 

Phase 1 will use 560 MVA of capacity to annually produce 50,000 tons of hydrogen and 300,000 tons of green  ammonia using renewable electricity and with the announcement of the Phase 2 development, the project will  use an electrical connection of 1400 MVA to produce a total of 150,000 tons of hydrogen and more than 1 million  tons of green ammonia annually. 

MP2X is and will continue to be a truly European direct driver of other national investments in the hydrogen  production value chain in Sines, with technical and commercial partnerships to buy hydrogen produced by third  parties. MP2X provides for the construction and operation of solar and wind farms that will produce the  renewable energy dedicated to the industrial unit in Sines, to be implemented in inland, deconcentrated, and  dispersed areas of the Portuguese territory. Thus, in addition to Phase 2, this project will also contribute towards greater territorial balance and cohesion. 

MadoquaPower2X Consortium members 

Madoqua Renewables is a Portuguese industrial transformation and development company focused on energy transition and  delivery of new generation industrial process assets with a specific focus on net zero carbon projects. Madoqua Renewables  is developing project assets valued at €2 billion across the hydrogen value chain.  

Power2X is a CPP backed project developer and management consultancy for energy transition projects across Europe,  Africa and the Middle East. The company is based in Amsterdam and works with several business partners on new projects in  the energy transition.  

Copenhagen Infrastructure Partners was founded in 2012 and is today the world’s largest dedicated fund manager within  greenfield renewable energy investments and a global leader in offshore wind. CIP manages ten funds and has to date raised  approximately EUR 26bn for investments in energy and associated infrastructure from more than 120 international institutional investors. CIP will accelerate its role in the global energy transition and aims to have EUR 100bn under management in green  energy investments by 2030.