Fusion Fuel announced that the company has signed an offtake agreement with Portuguese natural gas utility Dourogás for green H₂ produced from Fusion Fuel’s projects in Portugal. This represents Fusion Fuel’s first offtake contract aimed at blending green H₂ within the Portuguese natural gas grid, and a first-of-its-kind agreement to support the Portuguese government in meeting its decarbonization objectives. Portugal’s national H₂ strategy, adopted in 2020, laid out high-impact targets including a 15% blend of H₂ in its natural gas distribution network and 2 GW of electrolyzer capacity by 2030.

The first H₂ to be blended will be produced at Fusion Fuel’s GreenGas project in Evora. The facility is expected to be commissioned in 2023 and would produce roughly 40 tpy of green H₂. Dourogás will be able to use this H₂ in its domestic, industrial and mobility NGV segments, sectors where the Dourogás Group is the market leader. Portugal's largest gas distribution network, Galp Gás Natural Distribuição – recently renamed Floene – is expected to build the infrastructure to enable blending in the grid as part of its broader commitment to the energy transition.

On January 25, Fusion Fuel welcomed the senior executives of Dourogás and Floene to its Benavente electrolyzer factory to formally mark the execution of the agreement. Pedro Caçorino Dias, Fusion Fuel’s Head of Portugal, said, “This is a critical milestone in the development of the green H₂ economy in Portugal. Our agreement with Dourogás is the first large-scale green H₂ offtake contract in Portugal to date, and a concrete commitment by players across the value chain to establish a liquid market for green H₂. Not only will this help us strengthen our footprint in the industrial decarbonization space, but it will also help lay the groundwork for Portugal achieve the aspirations it laid out over two years ago in its national H₂ strategy. With its extensive service network and stated emphasis on sustainability and energy innovation, Dourogás is the ideal counterpart in this endeavor. We hope to continue to cultivate our partnership with Dourogás and explore further opportunities for collaboration, particularly in the area of H₂ mobility.”

Nuno Moreira, CEO of Dourogás Group, said, “This is an important agreement for the Dourogás Group since it represents a step forward in its mission to provide clean energy to and within Portugal. Dourogás has a public commitment to the decarbonization of the economy through the production and promotion of renewable gases, including biomethane and green H₂, and the Fusion Fuel project is innovative and develops with this same purpose. Dourogás is the leading gas company in the national NGV mobility sector and this project aligns with our commitment to contribute towards Portugal’s decarbonization goals. Our action and operations remain set to support the decarbonization agenda of the national gas sector and economy, aligned with national and European policies.”