By a published decree, the government authorized an Environment Fund of 867,692 euros until 2024 for the “Green Pipeline Project”, a pilot project to pump green hydrogen into the natural gas network and decarbonize the energy sector.
The largest share of project expenditures of €607,384 has been approved for this year, €230,307 for next year and the remaining €30,000 for 2024, but the amount set for 2023 and 2024 can be increased from the balance determined in the execution of the budget for previous years, according to the decree published today in Diário da República.
Minister for the Environment and Climate Change Duarte Cordeiro and Secretary of State for Budget Sofia Batalha, who signed the diploma, determine that the costs arising from the regulation “will be covered by adequate amounts entered or to be entered” in the Fund’s budget.
Galp Gás Natural Distribuição, the company in charge of the management and development of the Green Pipeline project, has applied to the Innovation Assistance Fund (FAI) for financial incentives to develop a project for the injection and distribution of hydrogen (H2) green in the natural gas network, especially in the geographical area of Seixal.
“On August 24, 2021, an incentive concession agreement was concluded between FAI and Galp Gás Natural Distribuição to support the Green Pipeline project with a maximum incentive amount of 867,692.81 euros, which corresponds to a rate of 85.43% of the cost of the project, which is calculated for 27 months,” the document says.
The rulers in the preamble of the diploma recall that the FAI was liquidated at the end of 2021, giving way to the Environmental Fund, and emphasize that it is necessary that this fund ensure all legal processing of the processes that have been ongoing in previous years.
The Innovation Support Fund was not financed from the state budget.
The Green Pipeline Project is led by Galp Gás Natural Distribuição (GGND) and involves multiple partners from design to construction, involving academia, public and private institutions.
Green hydrogen, a 100% renewable fuel, will be produced at the Seixal Industrial Park through a partnership between GGND and the Portuguese company Gestene.
At the initial stage of the project, 2% hydrogen will be pumped into the natural gas network, with this percentage gradually increasing to a maximum of 20% over two years.
The entire process will be monitored and monitored in detail by a panel of experts so that this project can serve as an example of good practice for other future projects, both nationally and internationally.
Author: Lusa
Source: CM Jornal
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