Two green hydrogen projects owned by CI Energy Transition Fund I, managed by Copenhagen Infrastructure Partners, have secured grants from the European Commission.
Under the first European Hydrogen Bank auction, the Catalina project in Aragon, Spain, was awarded €230 million, while the Madoqua project in Sines, Portugal, received €245 million. Together, they boast a combined electrolyser capacity of 1000MW.
Catalina, with a 500MW electrolyser capacity, aims to produce green hydrogen to mitigate carbon emissions from industrial applications. Meanwhile, Madoqua, also with a 500MW capacity, is focused on producing green hydrogen and ammonia primarily for shipping purposes.
Expressing pride in the achievement, Soren Toftgaard, speaking on behalf of the partner group of the Energy Transition Fund, stated, “We are very proud that our projects have been awarded this grant, and we applaud European policy makers for recognizing the importance of the hydrogen economy in Europe.”
Toftgaard highlighted the maturity of the hydrogen economy, evidenced by the competitive bids in the pilot auction. He emphasized the role of CIP in delivering green hydrogen projects and thanked partners, authorities, and local communities for their collaboration.
The grants, which include production premiums of €0.48/kgH2 for both projects over a 10-year period, bring them closer to Financial Investment Decision by bridging the gap between cost and sales price. The funding is contingent on the projects becoming operational within five years of signing the grant agreement, with an expected operational timeline no later than 2029.
