The Portuguese Government has opened its first tender for hydrogen and biomethane blending into the nation’s public gas network.
Offering top prices of €127/MWh of renewable hydrogen and €62/MWh of biomethane, the “descending clock” auction price will decrease until bidders are unwilling to sell the gases at certain prices.
Bidders will face three phases of qualification, bidding and awarding.
Up to 150GWh/year of biomethane and 120GWh/year of hydrogen will be up for tender, with any organisation meeting specified requirements able to participate.
The auction has been designed to facilitate the integration of renewable and low-carbon gases into the public gas network, with the National Gas Transmission Network and National Gas Distribution Network participating.
Slated by the Portuguese Government as the answer to the country’s climate target, the framework is hoped to ensure the competitive and transparent acquisition of the gases to reinforce its energy infrastructure.
In 2022, Wärtsilä partnered with Capwatt to develop a hydrogen blending project in Maia, Portugal, set to test up to 10% green hydrogen volume in a natural gas blend fuel.
Read more:10% hydrogen blends to be introduced in Portugal
Later that year, the two companies signed a further agreement to integrate hydrogen into Capwatt’s cogeneration units (CHP) powered by natural gas, with around 160MW of installed power under the company’s portfolio.
The opening of the Portuguese tender comes just weeks after the European Council signed off the gas and hydrogen market package, to see the low-carbon gas rules become law.
Read more: European Council signs off gas and hydrogen market package
Aimed at phasing out fossil gases in EU networks, the package lays out rules for the organisation of the natural gas market while establishing a framework for the development of a hydrogen market.
The package dictates that long-term fossil gas contracts will not be able to be signed as of 2049 to “promote the penetration” of renewable and low-carbon gases.
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