The two projects are cornerstones in the future decarbonization of European hard-to-abate energy sectors like shipping and heavy industries. Together, they represent a combined electrolyzer capacity of 1,000 MW.

Catalina is a H₂ project with an electrolyzer capacity of 500 MW located in Aragon in the north of Spain. The project will produce green H₂ to reduce carbon emissions from industrial applications. Madoqua, located in Sines, Portugal, is a Power-to-X facility that will produce green H₂ and ammonia primarily for shipping. It has an initial electrolyzer capacity of 500 MW.

The two projects have been invited for the grant agreement preparation with the European Commission. Catalina will receive a production grant with a fixed premium of €0.48/kgH₂ for ~48,000 tH₂ p.a. over a 10-year period, an expected total of €230.5 MM. Madoqua will receive a fixed premium of €0.48/kgH₂ for ~51,000 tH₂ p.a. over a 10-yr period, an expected total of €245 MM.

“We are very proud that our projects have been awarded this grant, and we applaud European policy makers for recognizing the importance of the H₂ economy in Europe. This pilot auction shows that the economy behind a future H₂ industry is maturing, demonstrated by these competitive bids. Today’s announcement is a proof point of CIP’s ability to deliver green H₂ projects for building a future H₂ economy in Europe. We would like to thank our partners in both Portugal and Spain as well as the authorities and local communities in both countries for working with us in creating a greener future for the coming generations of Europeans,” said Søren Toftgaard, on behalf of the partner group of the Energy Transition Fund.

The projects will receive the awarded funding from the date of commercial operation until the end of the 10-yr grant period. The grants are bringing the projects closer to Financial Investment Decision by reducing the gap between cost price and sales price and are important enablers for the success of the projects. The grant is dependent on the two projects being operational within five years of signing the grant agreement. CIP expects the two projects to be operational no later than 2029.