SINES GREEN HYDROGEN PRODUCTION (EIB-20230533)

Countries
  • Portugal
Geographic location where the impacts of the investment may be experienced.
Specific Location
Sines
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • European Investment Bank (EIB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
U
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Apr 9, 2024
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
GALP ENERGIA SGPS SA
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 195.46 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 180
Converted using 2024-04-09 exchange rate.
Project Cost (USD)
$ 270.39 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 249
Converted using 2024-04-09 exchange rate.
Primary Source

Original disclosure @ EIB website

Updated in EWS Sep 8, 2024

Disclosed by Bank Aug 6, 2024


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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, the project will finance the implementation and operation of a very large-scale, grid-connected electrolyser (100 MW) producing renewable hydrogen to be supplied to a refinery.

The project concerns the development, implementation and operation of a large-scale (100 MW) hydrogen production plant. The plant is planned to manufacture renewable hydrogen to be supplied to refinery facilities including to a future large-scale Hydrogenated Vegetable Oil (HVO, i.e. biodiesel) plant, outside of the scope of the project. The hydrogen production plant will be equipped with an electrolyser composed of ten arrays, each with ten 1MW stacks, complemented by associated equipment, such as air cooling, connecting internal pipework and other utility networks. Targeted annual average production volume of the renewable hydrogen over the entire envisaged operating period is in the order of ~10 kt/year. The nominal production capacity amounts to ~15 kt/year.

The project’s scope will further comprise one new high-voltage substation (150 kV) to connect the electrolyser to the transmission network with a new transmission line of short distance (6km).

The hydrogen production plant will be located in the municipality of Sines, within the district of Setúbal, Portugal.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

Residual impacts were classified of small magnitude and low significance.

For the transmission line, competent authorities concluded that impacts to the environment during the construction phase are temporary, rated minor to medium, and residual impacts during the operation phase are negligible, incl. those on flora and fauna, visual and cultural heritage, provided the identified mitigating measures will be implemented and respected.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Galp Energia, SGPS, S.A. is a Portuguese multinational energy corporation, headquartered in Lisbon, Portugal.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Galp Energia SGPS SA Client -

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

No contacts available at the time of disclosure.

ACCESS TO INFORMATION

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