BP’s 50/50 solar power joint venture Lightsource BP has signed an agreement with Portuguese gas utility Dourogas to supply renewable energy for eight green hydrogen projects.

Dourogas will develop 130MW of electrolyser capacity powered by up to 200MW of solar, with additional energy potentially drawn from the grid to optimise electrolyser usage. The utility plans to directly inject hydrogen into Portugal’s gas grid. Separate to the partnership, Dourogas plans to build its first hydrogen fuelling station early next year and is investing in biomethane for the gas grid and use as a transport fuel.

“When used to generate green hydrogen, [solar] becomes an entire energy transition toolkit” Lobo, Lightsource BP

“This partnership between Dourogas and Lightsource BP results from the priority that these companies place on the development of new energy green projects,” says Nuno Moreira, Dourogas group CEO.

“It is undoubtedly a step forward towards the decarbonisation of the economy to which Dourogas is committed, paving the way to a sustainable world for the next generation.”

The partners’ first project, Monforte, will receive a €5mn ($5.6mn) grant from the EU’s Portugal 2020 fund to support early-stage deployment. Lightsource BP notes that the timelines for all eight projects will depend on permitting and regulatory decisions, but it expects Monforte to produce its first hydrogen “well in advance of 2025” and to be completed in 2023.

This agreement brings Lightsource BP’s total solar pipeline in Portugal to 1.7GW. The company has joined green hydrogen consortiums in Australia and the UK.

“Solar is scalable, quick to deploy and, today, cheaper than any other form of electricity. We have always believed in solar as a vital tool in decarbonisation,” says Miguel Lobo, Lightsource BP’s country head for Portugal.

“When used to generate green hydrogen, it becomes an entire energy transition toolkit. The clean energy locked into these hydrogen molecules can immediately cut the footprint of industries, heavy transport and heat in ways electricity alone cannot.”

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Author: Polly Martin