Fusion Fuel Green (HTOO)

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Hydrogen - Portugal already in the race to get priority funding from Brussels https://eco.sapo.pt/2021/09/29/hidrogenio-portugues-ja-esta-na-corrida-para-obter-financiamento-prioritario-de-bruxelas/?fbclid=IwAR2FYpX9Tp7GTKIRc9oaNGGppKODUmQStfo9rbN8zmgHTrYbc7a15ZlfaWA
Barbara Silva, 29 September 2021

Fusion Fuel and 1s1Energy were the companies selected to join the first round IPCEI (Industry and Technology), "following the guidelines of the German coordination" reveals the MAAC.

Portugal has moved forward with a first application of three green hydrogen production projects for the status of An Important Project of Common European Interest (IPCEI) in Hydrogenwith the European Commission. Once this status is granted by Brussels, the projects elected are considered as priorities and are easier to obtain significant Community funds.

Bondalti, Fusion Fuel and 1s1Energy were the three companies selected to integrate with their projects this first round IPCEI (Industry and Technology), "following the guidelines of the German coordination", revealed to ECO/Capital Verde fonte of the Ministry of Environment and Climate Action.

"Threeprojects have been identified, but there are more potential projects in the EU survey for the next vacancies,"said the same source, stressing that "any formal selection of Portugal will only take place after verification of the potential of the European value chain and analysis of feedback from the European Commission".

The Minister of Environment and Climate Action, Matos Fernandes, had already confirmed that Portugal's candidacy for IPCEI "is presentedin its first phase". "And it has already opened a second phase, which is taking place, and we estimate by the end of October, early November, to be able to submit more projects in this second package of applications," he also said.

In the minister's assessment, the major hydrogen projects in Portugal are mainly part of the IPCEI and the funds that the IPCEI may finance. "Some of these projects are already moving forward. H2Sines, for example, has already received €40 million in funding from Brussels,the minister said. In June he had already announced in Parliament that "the Sines H2 project is one of only three projects that the European Union has already approved on its merits".

Thus, in this application to Brussels, the largest hydrogen projects are mainly appropriate, since the small and medium-sized ones have at their disposal several warnings for European funding, through poseur (package of 40 million to 34 MW, with 13 projects already selected) and the Recovery and Resilience Plan (185 million by 2023, to support 264 MW of production capacity).

The two largest hydrogen production projects in Portugal are precisely Bondalti's H2Enable (€2.4 billion), located in Estarreja, and H2Sines (worth €1.5 billion, now without EDP and Galp, but which is being led by France's Engie and also includes danish Vestas and Portuguese Martifer in a consortium.

Matos Fernandes also recalled that these projects have more options available to obtain support for their development: "We must not forget that this Thursday are delivered applications for innovative agendas for the industry. And we are sincerely convinced that many renewable energy projects will be candidates. From batteries and lithium to the most sophisticated renewable production and renewable gases."

The minister then says that "it is now up to companies to build their agendas and make their applications for European funds, in funds that are not managed by us, but by the Ministry of Economy. We know that there will be many projects and applications from the energy area," he said.

In 2020 the Government released a short list of 37 investment projects in the hydrogen industry sector that would go to the next stage and could see to be selected to integrate the Portuguese application to the IPCEI of hydrogen.

This list, in addition to H2Sines and H2Enable, were the projects of Fusion Fuel, Grupo Águas de Portugal, Akuo Energy/Solarbel, Altri (for the decarbonization of the pulp sector), the Polytechnic Institute of Portalegre, Amnis Pura (with the University of Porto), the Intermunicipal Community of the Middle Tejo, the CP with Caetano Bus (H2Rail, for the decarbonization of rail passenger transport), Energypulse Systems, EQS – Management of Shareholdings, Euro FPV Holdings, Gesto Energia with Dourogás, ISQ, The Navigator Company, PRF – Gas, Technology and Combustion, Enforce – Energy Engineering, Prio, Smartenergy, Turbogás, Voltalia, Hyperion, Caetano Bus, man energy solutions, among others.

"Those selected presented more detailed information, at the technical and financial level, which will allow defining those that may constitute the formal basis of the application," the ministry said in a statement, stressing that "no funding is associated and/or guaranteed."

ECO/Capital Verde João Galamba had already said that the goal is for the Portuguese application to IPCEI to include the largest number of companies, with a "pipeline of robust, mature and fit projects in the European strategy". But "with weight and measure: we will not take 500 projects to Brussels, but if we have 20 or 30, it will be ideal."