Galp Plans to Produce Green Hydrogen at Sines Refinery
Portugal's Galp reportedly plans to install a 100-megawatt electrolyser to power its refinery in Sines with green hydrogen by 2025. The company’s Chief Executive Andy Brown told news agency Reuters in an interview that the project could be expanded to up to 1,000 MW and be worth around EUR 1 billion. He told “Galp wants to gradually produce zero-carbon green hydrogen through a process of electrolysis using renewable solar energy. At the moment, this process is more expensive than producing hydrogen by using heat and chemical reactions to release it from coal or natural gas, but because of the cost of gas and the cost of CO2, at a certain point it can be profitable.”
Galp’s refinery, located south of Lisbon, is Portugal's biggest consumer of hydrogen from natural gas, but Galp wanted to gradually produce the zero-carbon fuel through a process of electrolysis using renewable solar energy. Such hydrogen is now more expensive to extract than the heavily polluting conventional method of using heat and chemical reactions to release it from coal or natural gas, known as brown and grey hydrogen, respectively.