Portugese biomethane and renewable hydrogen grid injection contracts set for 36 months

In Portugal, winners of the first auction of renewable gases, biomethane and renewable hydrogen, financed through the Environmental Fund, committed to a maximum period of 36 months, after the date of granting the aid, for the first injection of renewable gases into the National Gas System (SNG). As announced by the Directorate General of Energy (DGEG), the auction resulted in the award of 1990 MWh/year of biomethane at a price of €62/MWh and 119280 MWh/year of renewable hydrogen at a price of €127/MWh and will allow the SNG to incorporate the first projects for the production of renewable gases for injection into the SNG, in particular hydrogen.

The auction, worth 140 million euros, allows long-term contracts for the injection of renewable hydrogen into the Public Gas Network. The quantities of renewable gases fixed in this auction will be purchased by the wholesale Trader of Last Resort for injection into the transmission and distribution networks, operated by REN and Floene, respectively.
In 2022, REN designed and implemented the H2REN Program, having achieved certification of all its infrastructures for the transport, distribution and storage of hydrogen and gas mixtures in 2024, complying with the decarbonization objectives defined by the Portuguese Government.