Green ammonia production at Sines could net €380 million in annual revenues

Developers involved in the MadoquaPower2X project to create green ammonia at Sines are looking at the first phase of the production to begin in 2028.

With an investment of around €1Bn, it is expected that the plant will have a capacity to make around 51,000 tonnes of Green Hydrogen and 300,000 tonnes of green ammonia from renewable energy with estimated revenues of between €320 million to €380 million a year.

MadoquaPower2X is a consortium comprising Madoqua Renewables, Power2X and Copenhagen Infrastructure Partners (CIP).

Madoqua creates, delivers and operates projects to produce and sell hydrogen and hydrogen related derivatives such as green ammonia, green methanol and synthetic fuels.

MadoquaPower2X will use renewable energy and 1GW of electrolysis capacity to produce annually 51,000 tons of green hydrogen and 300,000 tonnes of green ammonia. It is the first project to be installed at the future energy and technological hub of Sines on an industrial scale.

Power2X is a project developer and consultancy for energy transition projects across Europe, Africa and the Middle East. The company is based in Amsterdam and works with several business partners on new projects in the energy transition. The focus is on sizeable projects in Green and Blue Hydrogen, Biofuels, as well as related conversion, storage and end use assets, all with a focus on decarbonising industry.

Founded in 2012, CIP is a global leader specialised in offering tailor-made investments in energy infrastructure assets globally currently having €16Bn under management. Through its Energy Transition Fund CIP invests in next generation energy infrastructure solutions, e.g., Power-to-X, to decarbonise hard-to-abate sectors such as steel, agriculture and transportation.

The project is expected to create around 200 jobs. MadoquaPower2X will use renewable energy and 500 MW of electrolysis capacity. It is the first project to be installed at the future energy and technological hub of Sines.

The project is the first real step in the implementation of a new energy transition model, of which Portugal is an early mover, asserting itself as a relevant player in the new energy world order. The hydrogen produced under this project can be used by the local industry.

Electricity will be sourced from renewable power produced in Portugal, in particular from renewable energy communities for wind and solar plants that are being developed in parallel. This approach will ensure availability of dedicated renewable energy throughout the lifetime of the project.