Portugal Hydrogen Energy Market

Portugal Hydrogen Energy Market Overview:

The Portugal hydrogen energy market size reached USD 900.60 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 2,056.99 Million by 2033, exhibiting a growth rate (CAGR) of 8.61% during 2025-2033. The market is emerging as a key pillar of its clean energy transition, driven by abundant renewable resources, particularly solar and wind. The government’s National Hydrogen Strategy (EN-H2) aims to position Portugal as a green hydrogen hub in Europe, focusing on decarbonizing industry, transport, and energy storage. Moreover, the EU funding and private investment, projects such as large-scale electrolysis facilities in Sines are under development thus strengthening the Portugal hydrogen energy market share.

Portugal Hydrogen Energy Market Trends:

Strong Government Strategy and EU Support

Portugal’s National Hydrogen Strategy (EN-H2), aligned with EU decarbonization goals, is driving the country’s green hydrogen market. The strategy sets ambitious targets, including achieving a 10% hydrogen share in national energy consumption by 2030, integrating hydrogen across transport, industry, and energy storage, and enabling 15% hydrogen injection into natural gas networks. Key infrastructure projects, such as the Sines industrial cluster with 1 GW of electrolysis capacity and 50–100 hydrogen refueling stations, are supported by EU recovery funds and green transition financing. These policies reduce investor risks, foster private partnerships, and accelerate technological innovation. Integration into EU hydrogen networks and potential cross-border pipelines further position Portugal as a strategic exporter to Northern Europe. Together, these measures create a favorable environment for scaling production, boosting industrial decarbonization, and advancing the country’s role in the European hydrogen economy.

Abundant Renewable Energy Resources

Portugal’s rich renewable energy potential, particularly in solar and wind power, is a key Portugal hydrogen energy market trend. The country already generates over half of its electricity from renewables, providing an ideal foundation for large-scale green hydrogen production through electrolysis. Offshore wind projects in development and high solar irradiation levels make Portugal especially competitive in producing low-cost renewable electricity, which is crucial for hydrogen viability. By leveraging this abundance, Portugal aims to produce hydrogen not only for domestic use but also for export to other European markets seeking clean fuels. Renewable integration ensures that hydrogen aligns with EU decarbonization goals, strengthens Portugal’s energy independence, and positions it as a leading supplier in the emerging green hydrogen economy. This natural advantage underpins investor confidence and long-term market expansion.

Industrial and Export Opportunities

Portugal is leveraging hydrogen both as a domestic decarbonization tool and a strategic export commodity. Energy-intensive sectors like cement, steel, and refining are increasingly adopting green hydrogen to meet strict EU carbon reduction targets, thus supporting Portugal hydrogen energy market growth. Simultaneously, Portugal’s strategic location, deep-water ports especially Sines and connections to Spain and broader European networks enable large-scale hydrogen exports. Central to this vision is the MadoquaPower2X project, a joint venture of Madoqua Renewables, Power2X, and Copenhagen Infrastructure Partners, developing a facility with up to 1 GW of electrolyser capacity. The plant is projected to produce 150,000 tonnes of green hydrogen and 300,000 tonnes of ammonia annually, supporting both industrial decarbonization and international trade. This dual-market approach drives investment, strengthens the economy, creates jobs, and positions Portugal as a key hydrogen corridor in Europe.

Portugal Hydrogen Energy Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the region level for 2025-2033. Our report has categorized the market based on production method, type, and application.

Production Method Insights:

• Steam Methane Reforming (SMR)
• Electrolysis
• Coal Gasification
• Others

The report has provided a detailed breakup and analysis of the market based on the production method. This includes steam methane reforming (SMR), electrolysis, coal gasification, and others.

Type Insights:

• Grey Hydrogen
• Blue Hydrogen
• Green Hydrogen

The report has provided a detailed breakup and analysis of the market based on the type. This includes grey hydrogen, blue hydrogen, and green hydrogen.

Application Insights:

• Transportation
• Industrial
• Power Generation
• Others

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes transportation, industrial, power generation, and others.

Regional Insights:

• Norte
• Centro
• A. M. Lisboa
• Alentejo
• Others

The report has also provided a comprehensive analysis of all the major regional markets, which include Norte, Centro, A. M. Lisboa, Alentejo, and others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Portugal Hydrogen Energy Market News:

• In July 2025, Portugal and Morocco strengthened their strategic partnership, placing green hydrogen, electricity interconnection, and maritime connectivity at the center of bilateral cooperation. In Lisbon, Portuguese Foreign Minister Paulo Rangel and Moroccan Foreign Minister Nasser Bourita reaffirmed their commitment through a Joint Statement, highlighting green hydrogen as a key priority. Building on historic ties and the 2023 High-Level Meeting, both nations aim to advance economic, energy, and strategic goals, reinforcing their role in Europe-Africa energy transition.
• In September 2024, Portugal’s AICEP granted Potential National Interest (PIN) status to DH2 Energy’s VVR Green hydrogen project in Vila Velha de Ródão. The plant, initially featuring 35 MW of electrolysis and 49 MWp of solar PV, will produce 1,650 tons of renewable hydrogen annually. A second phase will expand capacity to 75 MW and 100 MWp solar. This recognition highlights the project’s economic, regional, and decarbonisation impact in Portugal’s hydrogen market.

Portugal Hydrogen Energy Market Report Coverage:

Key Questions Answered in This Report:

• How has the Portugal hydrogen energy market performed so far and how will it perform in the coming years?
• What is the breakup of the Portugal hydrogen energy market on the basis of production method?
• What is the breakup of the Portugal hydrogen energy market on the basis of type?
• What is the breakup of the Portugal hydrogen energy market on the basis of application?
• What is the breakup of the Portugal hydrogen energy market on the basis of region?
• What are the various stages in the value chain of the Portugal hydrogen energy market? 
• What are the key driving factors and challenges in the Portugal hydrogen energy market?
• What is the structure of the Portugal hydrogen energy market and who are the key players?
• What is the degree of competition in the Portugal hydrogen energy market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Portugal hydrogen energy market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Portugal hydrogen energy market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Portugal hydrogen energy industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.