Green Hydrogen and Energy Transition: Current State and Prospects in Portugal

Abstract

Hydrogen is a promising commodity, a renewable secondary energy source, and feedstock alike, to meet greenhouse gas emissions targets and promote economic decarbonization. A common goal pursued by many countries, the hydrogen economy receives a blending of public and private capital. After European Green Deal, state members created national policies focused on green hydrogen. This paper presents a study of energy transition considering green hydrogen production to identify Portugal’s current state and prospects. The analysis uses energy generation data, hydrogen production aspects, CO2 emissions indicators and based costs. A comprehensive simulation estimates the total production of green hydrogen related to the ratio of renewable generation in two different scenarios. Then a comparison between EGP goals and Portugal’s transport and energy generation prospects is made. Portugal has an essential renewable energy matrix that supports green hydrogen production and allows for meeting European green hydrogen 2030–2050 goals. Results suggest that promoting the conversion of buses and trucks into H2-based fuel is better for CO2 reduction. On the other hand, given energy security, thermoelectric plants fueled by H2 are the best option. The aggressive scenario implies at least 5% more costs than the moderate scenario, considering economic aspects.