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As foreseen in the National Hydrogen Strategy, the first national auction for the centralized purchase of renewable gases (hydrogen produced by electrolysis of water using electricity from renewable energy sources, and biomethane) intended for injection into the public natural gas network was held.
Launched with the goal of decarbonizing gas consumption, the auction was a success in the hydrogen component: the amount auctioned was sufficient to fully satisfy all promoters’ bids, without the need for allocation cuts; and the bidding phase closed at the best possible price — the base price of €127/MWh.
In this auction, the supply in question was for a ten-year period, consisting of 60 GWh per year guaranteed for high-pressure injection into the National Gas Transmission Network, managed by REN, and another 60 GWh per year directed to the National Gas Distribution Network.
In the hydrogen category, eight companies competed to supply the product at a guaranteed price, and the entire quantity was sold at the maximum auction price.
“We achieved our goals. We positioned ourselves at the upper limits and sold our entire annual hydrogen production capacity permitted under the competitive process — 50% (760 tons per year) of the total quantity — at the maximum auction price,” said Arlindo de Carvalho, COO of HyChem.
The contract resulting from this first auction will come into effect in 2027, and hydrogen injection into the Lisbon region’s gas distribution network must begin by the end of 2028.
As additional background, it is worth recalling the announcement made by the Minister of Environment and Energy, Maria da Graça Carvalho, in May 2024, regarding the launch of the auction for the centralized purchase of renewable gases, covering the production of green hydrogen and biomethane.
The auction, with an annual allocation of up to €14 million (€140 million over ten years), was intended — as stated by the minister — to stimulate projects in the fields of green hydrogen and biomethane, technologies with strong potential to significantly reduce greenhouse gas emissions and promote the circular economy.