A Memorandum of Understanding (MoU) signed between the Portuguese government and the European Investment Bank (EIB) is expected to help the country fast-track the deployment of hydrogen solutions.

As part of MoU, EIB has agreed to provide financial and technical assistance to help Portugal to develop a hydrogen economy.

The EIB will be available to provide financial support to eligible projects, technical assistance and advisory support to foster investments in the hydrogen sector in Portugal and to improve the bankability of projects.

The MoU was signed by EIB vice-president, Ricardo Mourinho Félix, and the Portuguese Minister of the Environment and Climate Action, João Pedro Matos Fernandes, during the conference, Hydrogen in Society – Bridging the Gaps, organised by the Portuguese Presidency of the Council of the European Union in Lisbon.

The agreement is in line with Portugal’s efforts to expand its portfolio of renewables and hydrogen to accelerate its energy transition.

The deployment of hydrogen solutions is key part of Portugal’s 2030 National Energy and Climate Plan (PNEC 2030) and of the 2050 Carbon Neutral Roadmap for Portugal (RNC2050).

The agreement is also expected to help Portugal to align itself with the European Union’s hydrogen strategy unveiled in 2020, which aims to help the region install 40GW of green hydrogen capacity by 2050.

The EIB vice-president said deploying hydrogen is vital “in promoting the green economic recovery in the context of COVID-19 as we see it as a fundamental enabler to make emissions more environmentally friendly. As the EU Climate Bank, we will be instrumental in mobilising and encouraging private investment, making Europe greener and more innovative.”

João Pedro Matos Fernandes, added: “Achieving carbon neutrality by 2050 and at least 55% Green House Gases emission reductions by 2030, demands profound changes in our energy system and a strong commitment to an energy transition supported in the deployment of renewable energy. Renewable hydrogen is expected to play a key role in the decarbonisation of sectors where other alternatives might not be feasible or be more expensive… Portugal aims to produce competitive green hydrogen and is keen to play a relevant role in the emerging hydrogen economy. This agreement we have signed today is an important piece of this strategy and is decisive for reinforcement of this projects.”