Construction has officially commenced on Phase 1 of the MadoquaPower2X (MP2X) project, an initiative promoted by Portugal's Madoqua Renewables, together with Denmark's CIP Energy Transition Fund and the Netherlands-based Power2X. The project aims to establish a large-scale production hub for green hydrogen and its derivatives in Sines, Portugal.

“The site has been officially handed over to Mota-Engil, the contractor responsible for the earthworks. The contractor began site levelling operations on the morning of November 9. Engexpor is responsible for supervising the works,” the project partners announced through the MadoquaPower2X LinkedIn account.

Phase 1 предусматривает the installation of a 500 MW electrolysis facility, with an expected annual production capacity of 51,000 tonnes of green hydrogen and 300,000 tonnes of green ammonia.

The project secured support through the first auction of the European Hydrogen Bank, receiving a fixed premium of €0.48 per kilogram of renewable hydrogen produced. The support scheme covers a total hydrogen production volume of 510,000 tonnes over a 10-year period, bringing the total subsidy awarded to approximately €245 million.

In the subsequent Phase 2, the project's electrolysis capacity is expected to increase to 1.2 GW. According to plans previously announced by Madoqua, this expansion would enable annual production of 150,000 tonnes of hydrogen and more than 1 million tonnes of ammonia.

The project's design and engineering work has been largely carried out by Italy's MAIRE Group. Its subsidiary NextChem was awarded the pre-FEED contract in 2022, while Tecnimont was selected in 2024 to undertake the Front-End Engineering Design (FEED).

With construction now underway, one of Europe's largest green hydrogen production projects is moving into its implementation phase. The project represents a total investment of approximately €2.8 billion, including around €1.3 billion for Phase 1, and is expected to become operational in 2029.

Source：Quantum Commodity Intelligence