First Green Hydrogen Injection Demonstration Project in Portugal

Mar. 17, 2023
Marubeni Corporation

Marubeni Corporation (hereinafter, “Marubeni”) launched the first green hydrogen injection demonstration project in the natural gas distribution network of Portugal through its investment in Floene Energias, S.A. (hereinafter, “Floene”), 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).

Photo of the launching ceremony at the project site in Seixal: 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

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.

*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:

Floene Overview  
Company Name: Floene Energias, S.A. (Changed from Galp Gás Natural Distribuição, S.A. in October 2022)
Representative: Gabriel Sousa
Location: Lisbon, Portugal
Business: Gas distribution business
Connections: 1.13 million households
Length of Pipeline: 13,498km
Volume Distributed: 1.7bcm p.a.
Distribution Area of Floene Distribution Area of Floene