European consortium to invest €1 billion in green ammonia complex in Portugal

The group plans to build the MadoquaPower2X complex in by Portugal's Port of Sines, targeting an annual production of 500,000 mt of green ammonia and 50,000 mt of green hydrogen by 2030.

PHOTO: Aerial view of container terminal in Port of Sines. Port of Sines

Hydrogen and ammonia produced from the complex will primarily be consumed in the domestic Portuguese market, while surplus product could be exported from the Sines port terminal.

Green ammonia is made by combining nitrogen from the atmosphere with hydrogen made from water electrolysis using zero-carbon electricity sources such as solar, hydro and wind.

Solar and wind power will cover the plant's electricity needs, and it will have an electrolysis capacity of 500 MW.

The project is currently under review and awaits a final investment decision that is expected by end of 2023. If the project moves ahead, the group aims to start building the plant in 2024 and commission it by 2030.

The consortium claims MadoquaPower2X can eventually scale up green ammonia production to 1 million mt/year.

Philip Christiani of Danish fund manager Copenhagen Infrastructure Partners (CIP), a partner in the project, highlights Sines' already established export terminals and its proximity to heavy industry as reasons for why it has good foundations for becoming a hydrogen and ammonia hub.