Hydrogen - Promotor's guide (APA/DGEG)

Promoter's Guide - "Legislation and Regulation for the Hydrogen Economy"

 

Portugal has set itself the goal of achieving Carbon Neutrality by 2050, within which the challenge of the current energy transition is absolutely imperative with a view to the almost total decarbonization of the sector. It is therefore necessary and strategic for the country an unequivocal collective response to this challenge, coupled with the post-COVID-19 recovery. The transition to a new energy model is the natural environment for the development of new business models and relaunch of the economy, opening new opportunities for economic and industrial development for the country.

 

Achieving carbon neutrality by 2050 implies a significant reduction in GHG emissions, which translates into a reduction trajectory of -45% to -55% in 2030, -65% to -75% in 2040 and -85% to -90% in 2050, compared to 2005 levels. Fulfilling this trajectory presents a set of truly transformational challenges, with particular emphasis on production and consumption patterns and how we produce and consume our energy. It is therefore important to outline a strategy that will allow us to achieve and consolidate the trajectory that Portugal has been pursuing in recent decades, based on a combination of low-carbon technologies, while ensuring that the national economy remains competitive and resilient.

 

Accelerating the energy transition and the decarbonization of the economy already in the next decade, means that Portugal must bet, among others, on the production and incorporation of gases of renewable origin, with a focus on green hydrogen, thus promoting a more intense replacement of fossil fuels in the various sectors of the economy and where electrification may not be the most cost-effective solution in the short to medium term. Portugal's bet on gases of renewable origin, in particular green hydrogen, will be made gradually, and in this way it will be possible to assess the impact of their introduction on the energy system. In addition to being a renewable source of energy, gases from renewable sources have as main advantages, among others, the fact that: (i) in complementarity with the electrification strategy, they allow to reduce the costs of decarbonization; (ii) substantially enhances security of supply in a context of decarbonisation; (iii) reduces energy dependence by using endogenous sources in its production; (iv) reduces GHG emissions in various sectors of the economy as it more easily promotes the replacement of fossil fuels and where electrification may not be the most cost-effective solution (e.g. refining, chemical, metallurgical, cement, extractive, ceramics and glass industries); (v) contributes to enhancing the achievement of national targets for the incorporation of renewable sources in final energy consumption; (vi) promotes efficiency in energy production and consumption by allowing solutions on a variable scale tailored to needs, close to the place of consumption and distributed throughout the national territory.

 

With the aim of introducing an element of incentive and stability for the energy sector, promoting the gradual introduction of hydrogen as a sustainable pillar and integrated in a broader strategy of transition to a decarbonized economy, Portugal prepared and presented the National Strategy for Hydrogen (EN-H2). EN-H2 frames the current and future role of hydrogen in the energy system and proposes a set of action measures and targets for the incorporation of hydrogen in the various sectors of the economy, which will imply the creation of the necessary conditions that enable this vision. It also fulfils the objective of giving a solid framework and a vision to all promoters with hydrogen projects in progress or in the initial phase, allowing them to be consolidated into a broader and more coherent Strategy that will enable new synergies and provide the necessary support. EN-H2 assumes as main targets for 2030: (i) 5% of green hydrogen in final energy consumption, road transport and industry; (ii) 15% green hydrogen injected into natural gas networks; (iii) 50 to 100 hydrogen fuelling stations; (iv) between 2 and 2.5 GW of production capacity (electrolyzers).