The government of Portugal has formalized its first tender process to integrate hydrogen and biomethane into the country’s public gas network. The tender offers maximum prices of 127 €/MWh for renewable hydrogen and 62 €/MWh for biomethane.
Tenders for the public gas network
To ensure the transparency and competitiveness of the process, it will be regulated by three phases: Qualification, bidding and awarding. A tender volume of up to 150 GWh/year for biomethane and 120 GWh/year for hydrogen has been established, with participation open to all organizations that meet the established requirements.
In addition, the auction has been designed to facilitate the integration of renewable gases into the public gas infrastructure, working closely with the National Gas Transmission Network and the National Gas Distribution Network. This initiative is part of Portugal’s climate objective and seeks to ensure the competitive acquisition of these gases to strengthen its energy infrastructure.
For example, in 2022, Wärtsilä partnered with Capwatt to carry out a hydrogen blending project in Maia, Portugal. This project would test up to 10% volume of green hydrogen in a natural gas fuel mixture. That same year, the companies signed a new agreement to integrate hydrogen into Capwatt’s natural gas-fired combined heat and power (CHP) units, with an installed capacity of approximately 160 MW.
The approval of the European Council
The launch of the tender in Portugal coincides with the recent approval by the European Council of the gas and hydrogen market package. gas and hydrogen market package which seeks to establish rules for a more environmentally friendly EU hydrogen market.
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Source: H2 View
Photo: Shutterstock
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