Site visit: Injecting hydrogen into Portugal's gas network
Pamela Largue
Posted on: 3 April 2024
Floene is piloting injecting hydrogen into Portugal's gas network, a project providing a blueprint for broader adoption and decarbonisation.
Portuguese gas distribution company Floene is piloting injecting hydrogen into the country's gas network. The project is called the Natural Energy of Hydrogen and has yielded positive results, providing a blueprint for broader adoption and demonstrating the potential to transform Portugal's gas sector.
To find out more about the project, Enlit on the road visited Floene's headquarters in Seixal, near Lisbon, and spoke to Chief Operating Officer Miguel Faria.
Natural Energy of Hydrogen
The project was launched in March 2023 and proved to be a milestone for both Floene and Portugal's renewable gas ecosystem.
It supplies hydrogen to 78 residences and four industries through a dedicated 1.4-kilometer pipeline. A mixing station combines natural gas with hydrogen for distribution.
According to Faria, there have been several takeaways or lessons from the project thus far. Firstly, the team found that the dedicated pipeline functioned identically to Floene's existing 13,700-kilometer network, demonstrating its compatibility with renewable gases. This, in turn, eliminates the need for expensive retrofits.
Secondly, the project garnered immense positive feedback, highlighting the public's interest in renewable gas solutions.
Faria states, "You cannot imagine the incredible feedback that we received. We received people from all over the world from all sorts of spectrums. And this is a small project, it's a pilot, but it proves that we need to make things happen..."
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Renewable gases in Portugal
Portugal, the last European country to adopt natural gas in the late 1990s, presents a unique opportunity for renewable gas integration. Faria highlights that Portugal's existing pipeline network is entirely compatible with renewable gases, requiring no modifications.
Additionally, Portugal has ample feedstock to produce biogas and biomethane, along with green hydrogen. A roadmap to 2050 outlines a strategy for full network decarbonization with minimal impact on consumers and industries.
"The opportunity is huge," emphasizes Faria. "This project shows that the moment is now."
Market dynamics and challenges
Faria acknowledges challenges, particularly the regulatory framework. Uncertainties regarding feed-in tariffs, costs, timelines and incentives for grid connection hinder wider adoption.
However, Faria remains optimistic. Floene receives two inquiries per week for renewable gas injection, and there is great interest from industrial off-takers too, which according to Faria, indicates strong upstream and downstream interest.
While some players await clearer regulations, others have started actively pursuing renewable gas production and offtake agreements.
As a regulated company, Floene's focus is to act as an enabler for decarbonisation across the gas value chain. Faria states, "We strongly believe that the best scenario for the Portuguese economy to achieve the decarbonisation roadmap is to have a balanced scenario between green electricity and green gases."
