Portugal Hydrogen Energy Market Expands with New Production and Infrastructure Projects 2025-2033

Market Overview

The Portugal Hydrogen Energy Market reached USD 900.60 Million in 2024 and is projected to grow to USD 2,056.99 Million by 2033. The market shows a Compound Annual Growth Rate (CAGR) of 8.61% during the forecast period from 2025 to 2033. Driven by abundant renewable energy resources like solar and wind, Portugal aims to become a green hydrogen hub in Europe under its National Hydrogen Strategy (EN-H2). This strategy focuses on decarbonizing industry, transport, and energy storage, while large-scale projects and EU funding support the market's expansion.

Study Assumption Years

• Base Year: 2024
• Historical Year/Period: 2019-2024
• Forecast Year/Period: 2025-2033

Portugal Hydrogen Energy Market Key Takeaways

• The market size was USD 900.60 Million in 2024 and is forecasted to reach USD 2,056.99 Million by 2033 with a CAGR of 8.61%.
• Portugal's National Hydrogen Strategy (EN-H2) aligns with EU decarbonization goals, targeting 10% hydrogen share in national energy consumption by 2030 and 15% hydrogen injection into natural gas networks.
• The Sines industrial cluster project includes 1 GW of electrolysis capacity and 50–100 hydrogen refueling stations, backed by EU recovery funds.
• Portugal leverages its rich solar and wind energy resources to produce low-cost renewable electricity critical for green hydrogen production.
• The MadoquaPower2X project aims to build a 1 GW electrolyser capacity plant producing 150,000 tonnes of green hydrogen and 300,000 tonnes of ammonia annually.

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Market Growth Factors

Portugal’s National Hydrogen Strategy (EN-H2), synchronized with European Union decarbonization efforts, plays a pivotal role in advancing the green hydrogen market. The strategy aims for a 10% hydrogen share in national energy consumption by 2030. It integrates hydrogen use across transport, industry, and energy storage sectors and targets 15% hydrogen blending into existing natural gas networks. Infrastructure development such as the Sines industrial cluster, which includes 1 GW of electrolysis capacity and up to 100 hydrogen refueling stations, is financially supported by EU recovery funds and green transition financing. These initiatives reduce investment risks, promote public-private partnerships, and accelerate technological innovation, creating a robust foundation for market growth.

Portugal’s abundant renewable energy resources strongly underpin the hydrogen energy market. Over 50% of the country’s electricity is generated from renewables, mainly solar and wind, supplying low-cost electricity essential for economically viable green hydrogen production via electrolysis. Upcoming offshore wind projects and high solar irradiation levels enhance Portugal’s competitiveness in renewable electricity generation, making it an ideal location for green hydrogen production. This capacity enables the country not only to meet domestic energy needs but also to supply hydrogen to other European markets, aligning with EU's decarbonization targets, reinforcing energy independence, and boosting investor confidence for long-term market expansion.

The market benefits from industrial demand and strategic export opportunities. Energy-intensive sectors, including cement, steel, and refining, adopt green hydrogen to comply with stringent EU carbon reduction standards, supporting internal demand. Portugal’s strategic geographical location, with deep-water ports like Sines and connections to Spain and Europe at large, facilitate large-scale hydrogen exports. The MadoquaPower2X project exemplifies this dual role by developing a facility with 1 GW electrolyser capacity to produce 150,000 tonnes of green hydrogen and 300,000 tonnes of ammonia annually. This supports industrial decarbonization and international trade, promoting economic growth, job creation, and positioning Portugal as a critical hydrogen corridor in Europe.

Market Segmentation

Production Method Insights:

• Steam Methane Reforming (SMR)
• Electrolysis
• Coal Gasification
• Others

These production methods encompass the main technological pathways for hydrogen generation analyzed in the market.

Type Insights:

• Grey Hydrogen
• Blue Hydrogen
• Green Hydrogen

These types refer to hydrogen classified by production technology and carbon footprint, with green hydrogen gaining prominence due to renewable integration.

Application Insights:

• Transportation
• Industrial
• Power Generation
• Others

Applications span key economic sectors utilizing hydrogen for fuel, process energy, and power supply.

Regional Insights

The report segments the market into Norte, Centro, A. M. Lisboa, Alentejo, and others. While regional statistics are not numerically detailed in the source, the Sines industrial cluster in Alentejo emerges as a significant hub. Supported by large-scale electrolysis projects and EU funding, this region stands out as a strategic location fostering market development, industrial decarbonization, and export capacity enhancement.

Portugal’s renewable energy resources combined with infrastructure investment in Alentejo and connectivity to European networks consolidate its regional dominance in the hydrogen energy market.

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Recent Developments & News

In July 2025, Portugal and Morocco enhanced their strategic partnership focusing on green hydrogen, electricity interconnection, and maritime connectivity. Portuguese Foreign Minister Paulo Rangel and Moroccan Foreign Minister Nasser Bourita issued a Joint Statement reaffirming their commitment to green hydrogen development, reinforcing the Europe-Africa energy transition.

In September 2024, Portugal’s AICEP granted Potential National Interest (PIN) status to DH2 Energy’s VVR Green hydrogen project in Vila Velha de Ródão. The project entails 35 MW of electrolysis and 49 MWp of solar PV initially, producing 1,650 tons of renewable hydrogen annually, with plans to expand capacity in a second phase, underlining its economic and decarbonization impact.

Key Players

• Madoqua Renewables
• Power2X
• Copenhagen Infrastructure Partners
• DH2 Energy

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