EDP plans three-year investment in green hydrogen 'growth market'

EDP Renewables will invest €630 million in hydrogen and battery storage in the three years to 2026, the company said at a capital markets day earlier this month.

EDP is developing a hydrogen project in an old thermal plant at Sines, Portugal (Image credit: Nimes)
EDP is developing a hydrogen project in an old thermal plant at Sines, Portugal (Image credit: Nimes)

The projected spend on green hydrogen and storage represents 3% of its total €21 billion investment, the company added.

The firm expects the global market for green hydrogen and ammonia use in ‘hard to abate’ sectors to reach 190GW by 2030. It considers green hydrogen a “growth avenue” and is targeting 1.5GW gross installed capacity by that date.

EDP has an existing hydrogen portfolio of 400MW in joint ventures and other partnerships. It plans to continue to use partnerships as a mechanism to scale up its hydrogen commitment, gaining competitive advantage from projects in Iberia. 

The company plans to develop new business models for hydrogen, as well as for solar and wind hybrids and storage projects. Likely markets include Portugal, where EDP is developing two hydrogen projects in old thermal plants in Sines and Ribatejo, and the USA, where the Inflation Reduction Act includes a $3/kg tax credit for clean hydrogen and storage facilities.

On 15 December EDP Brazil celebrated producing the first molecule of green hydrogen at its €7.5 million green hydrogen pilot project at the Pecém Thermoelectric Complex in Ceará – the first such project in the Brazilian state and for the EDP group. 

João Marques da Cruz, CEO of EDP Brasil, said the site was chosen because of Ceará’s exceptional solar and wind potential and for its location offering excellent international export infrastructure.

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