The Sines Energy Export Project or MadoquaPower2X (MP2X) is a green hydrogen and green ammonia production facility which will be developed in Alentejo, Portugal.
The project will be developed, installed, and operated by MadoquaPower2X, a consortium comprised of Madoqua Renewables, Power2X, and Copenhagen Infrastructure Partners (CIP).
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In October 2023, the partners increased the investment of the project to €2.8bn consisting of an additional €1.3bn for Phase 1 and €1.5bn for Phase 2.
The consortium will take the Final Investment Decision (FID) by quarter 4 (Q4) of 2023. The construction of the project is expected to commence in 2024.
It will take around 4 years to construct the project which will be followed by the commencement of commercial operations expected no later than 2028.
More than 200 direct and indirect jobs will be created during the construction of the project.
Once operational, the project will decarbonise Europe’s energy sectors like heavy industries and shipping by removing over 600 kilo tonnes per annum (ktpa) of carbon dioxide from the atmosphere.
The successful operations of the project will set-up an export energy carrier value chain between the Port of Sines in Portugal and Northwest Europe.
Sines Energy Export Location
The Sines Energy Export Project will be located and installed at the future energy and technological hub of Sines Industrial and Logistics Zone (ZILS) of Portugal.
Sines Energy Export Project Details
The Sines Energy Export Project or MadoquaPower2X is a Power-to-X facility producing green ammonia and green hydrogen for export via ships.
The development of the project will be in two phases: Phase 1 and Phase 2. Phase 1 of the project will have an initial electrolyser capacity of 500MW, and Phase 2 will have an electrolyser capacity of 700MW.
In total, the project will have an electrolyser capacity of 1.2GW (1,200MW).
Phase 1 of the project will produce around 51,000 tonnes of green hydrogen and 300,000 tonnes of green ammonia through renewable power supply using a 560MVA grid connection.
In total, the project (including Phase 2) will produce 150,000 tonnes of green hydrogen and over 1 million tonnes of green ammonia per year using a 1,400MVA grid connection.
Green hydrogen will be produced by using an alkaline-water electrolyser technology and Haber-Bosch process will be used to produce green ammonia.
The produced hydrogen will be transferred by the local hydrogen grid which will be used by other local companies and may also be blended into the natural gas grid.
Green ammonia will be transferred to the Port of Sines via a pipeline and exported and may be used as a maritime fuel by the European green fertiliser industry.
The Sines Energy Export Project will be powered by a renewable energy community with access to solar and wind projects in Portugal.
The solar and wind projects are being developed in coordination with the project.
Key Contractors
In September 2022, an engineering services agreement was signed between NextChem, a subsidiary of Maire Tecnimont, and the MadoquaPower2X consortium for the Sines Energy Export Project.
The consortium has awarded NextChem a Pre-Front End Engineering and Design (Pre-FEED) engineering services contract for the project. The agreement of the contract was signed at Gastech, Portugal.
The scope of the pre-FEED engineering services contract includes technological and process reviews, logistics and modularity reviews, and early studies.
The scope also includes front-end loading of engineering needed for permitting and licencing for the project.
KBR was selected by the consortium of the Sines Energy Export Project in October 2023 to deliver its zero-carbon K-Green technology.
As per the contract, KBR will deliver proprietary engineering design, equipment, technology licence, and catalyst solutions for the project.
KBR will also deliver its suite of advanced digital solutions to optimise the operations and energy efficiency of the project.
Financing
In a highly competitive European Hydrogen Bank auction held in April 2024, the European Commission selected the Sines Energy Export Project and awarded an expected €245m in operational subsidies to the consortium.
The European Commission has invited the consortium for a Grant Agreement preparation under which the project will receive a premium of €0.48 per kilogram of hydrogen for around 51,000 tonnes of hydrogen production per year for 10 years for the expected €245m.
The grant depends upon the start of the operations of the project within five years of signing the agreement.
