This project is a critical component of a broader €1.3 billion green hydrogen initiative in Sines, which positions the country at the forefront of the energy transition in Europe.

The Silves Wind Farm, currently undergoing the preliminary stages of environmental licensing, will feature thirty-two high-capacity turbines with a combined output of up to 224 megawatts (MW). Once completed, it will rival the entire existing wind power capacity in the Algarve and play a pivotal role in supplying renewable electricity to the green hydrogen production facility in Sines.

The hydrogen plant, developed through a partnership between Portuguese, Dutch, and Danish companies, will deploy 500 MW of electrolysis capacity in its first phase, producing up to 51,000 tonnes of green hydrogen and 300,000 tonnes of green ammonia annually. The ammonia will be transported via the Port of Sines for industrial and maritime use across Europe, reinforcing Portugal's strategic location and logistical advantage in the global green fuel supply chain.

With an eye on energy security, climate commitments, and export potential, the project represents a fundamental step toward reshaping Portugal’s energy landscape. It leverages the country’s exceptional natural resources of strong wind corridors in the Algarve and high solar irradiance throughout the south, to feed a new wave of industrial innovation centered on clean fuels.

Moreover, this project exemplifies how renewable energy infrastructure can function as a multiplier across economic sectors. By integrating wind and solar generation with green hydrogen production, Portugal is building the backbone for a decarbonized industrial base that can serve both domestic needs and high-demand European markets.

The European Commission has also recognized the significance of the Sines hydrogen project, awarding over €245 million in funding through the EU’s Hydrogen Bank initiative. This support will help close the cost gap between green hydrogen and traditional hydrogen derived from fossil fuels, accelerating the commercial viability of clean alternatives.

As part of a potential second phase, the Sines facility may expand its electrolyzer capacity to 1,200 MW, increasing hydrogen and ammonia production nearly threefold and bringing total investment to €2.8 billion. This expansion would further consolidate Portugal’s leadership in Europe’s hydrogen economy, opening doors for long-term contracts and energy partnerships beyond its borders.

While the project still faces environmental assessment hurdles, particularly due to the proximity of some turbine sites to protected areas, the developers have prioritized impact minimization and are working closely with regulators. Early assessments indicate that the chosen sites are predominantly on Scrubland, with limited ecological disruption expected.

In a global context where clean energy resilience and supply diversification are top priorities, Portugal's emerging role as a renewable electricity and hydrogen exporter is gaining momentum. Projects like MadoquaPower2X display the country’s potential to supply industrial Europe with low-carbon fuels while boosting its own energy independence and technological standing.

By marrying ambitious renewable generation with scalable hydrogen production, Portugal is not only addressing its climate goals but also carving out a strategic position in the next generation of energy markets offering a sustainable, export-ready alternative to fossil fuel dependency.

Author

Paulo Lopes is a multi-talent Portuguese citizen who made his Master of Economics in Switzerland and studied law at Lusófona in Lisbon - CEO of Casaiberia in Lisbon and Algarve.

Paulo Lopes