Marubeni Corporation launched the first green hydrogen injection demonstration project in the natural gas distribution network of Portugal through its investment in Floene Energias, S.A., a gas distribution system operator in Portugal with over 70% of the country’s market share (Marubeni holds a 22.5% stake in Floene through a joint venture with Toho Gas).
In this demonstration project, Floene is transporting green hydrogen*1 through its newly-constructed hydrogen pipeline, injecting it into its existing natural gas network, and distributing it to a customer base at around 80 residential, commercial, and industrial locations. The green hydrogen utilized is produced by a local company through an electrolysis process to split water using solar power. Floene plans to increase its injection ratio up to 20% during a two-year demonstration period as the Portuguese government is targeting a 10 to 15% injection ratio by 2030 in its National Hydrogen Strategy.
Marubeni has positioned “Green Strategy” as one of its basic policies for its Mid-Term Management Strategy GC2024, and the Marubeni Group aspires to be a forerunner in green businesses. Marubeni is also promoting a green hydrogen demonstration project in Chile*2. The company will contribute to decarbonization and energy transition through the promotion of renewable gases such as hydrogen and biomethane in Portugal and Chile.
Top image caption: Photo of the launching ceremony at the project site in Seixal: From left to right, Mr. Nuno Nascimento,Head of Strategy and Energy Transition, Floene; Mr. António Costa, Prime Minister; Mr. Paulo Silva, Mayor of Seixal; Mr. Duarte Cordeiro, Minister of Environment and Climate Action
*1 Green hydrogen is produced through an electrolysis process using electricity generated from renewable energy. It is extracted from water which has been split into hydrogen and oxygen.
*2 “Pilot Project of Green Hydrogen Injection into a Gas Grid in Chile,” December 16, 2022:
https://www.marubeni.com/en/news/2022/info/00025.html
