Invest International and Madoqua have signed an investment contract for the development and construction phase of MadoquaPower2X, a green hydrogen and ammonia plant in Portugal. Green hydrogen is seen as one of the building blocks of a fossil-free future. The project in phase 1, is expected to reduce CO2 emissions by 450,000 tonnes annually. Invest International is investing €1 million for the design phase and development of the commercial agreements for the future plant. The green hydrogen sector is a nascent industry, with associated high risks and costs and is often not yet financed by traditional banks.
Accelerate energy transition
Hans Docter, CEO a.i. of Invest International, emphasizes the importance of this development: “By investing in Madoqua, Invest International contributes to the broader European strategy to accelerate the energy transition and reduce dependence on fossil fuels. This investment creates opportunities for the import of green hydrogen to the Netherlands, with Rotterdam as a transit port. Dutch companies have a major role to play in the entire logistics chain. Our German neighbors, for example, are the largest consumers of hydrogen in Europe.”
Development capital
He continues: “Investments in the design phase of large scale projects are necessary in the run-up to realisation. The total cost for the design phase of this plant are significant and are not funded by traditional financing institutions. It will ultimately lead to the realization of a plant with a total CAPEX investment of more than €1.3 billion, creating around 3,000 indirect jobs during the construction phase.”
“When the hydrogen and ammonia plant is operational, it will create 115 direct highly skilled jobs. With our development capital investment, Invest International contributes to a crucial aspect of this large-scale European project, which is vital for the energy transition in Europe. The MadoquaPower2X project is an example of how we are entering an early phase of international renewable energy projects on behalf of the Netherlands and how we support businesses in the emerging hydrogen economy. We are scaling our investment portfolio for green hydrogen both in Europe and in Emerging Markets.”
Signing of the investment contract between Madoqua and Invest International. From left to right: Rogaciano Rebelo, CEO of Madoqua, Itske Lulof, Sector Head Energy at Invest International and Tim Zijderveld, Investment Manager.
Ammonia shipments in 2029
Madoqua will build the facility together with a European consortium alongside Power2X and Copenhagen Infrastructure Partners (CIP). The first phase of construction involves a 500 MW electrolyser and an ammonia production plant, which is to be built at the Sines Industrial and Logistics Zone (ZILS) in Sines, Portugal. The first ammonia shipment will be delivered in 2029. The investment shows how international cooperation and early stage development capital contribute to the realisation of the necessary energy infrastructure for the future.
Photo ZILS Sines + render images of hydrogen plant © Madoqua.
European Hydrogen Bank
An important part of the total investment for Madoqua’s project comes from European funds through the European Hydrogen Bank. This bank, a financing instrument at the initiative of the European Commission, aims to scale-up of domestic production of renewable hydrogen in the EU and connect the renewable hydrogen supply and demand, by creating investment security. The MadoquaPower2X project was one of the six winning parties in the European Hydrogen Bank’s first green hydrogen auction in 2024. A second auction will follow in December 2024 for an amount of 1.2 billion euros. If further projects in Europe with Dutch businesses are selected again in the second auction, Invest International will look at how it can contribute to a successful roll-out with its resources.
About Madoqua Power2X
MadoquaPower2X is spearheading a cutting-edge green hydrogen and renewable ammonia project in the Sines industrial zone (Zona Industrial e Logística de Sines, ZILS), Portugal. The initiative is a collaboration between Madoqua Renewables, Power2X, and Copenhagen Infrastructure Partners (CIP). This consortium is dedicated to developing, installing, and operating the project with the highest environmental and safety standards in mind. The project not only fosters economic growth but is also classified as a sustainable economic activity under the latest EU Taxonomy, playing a vital role in ensuring a robust and independent power infrastructure.
