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Tecnimont secures FEED contract for a green hydrogen and ammonia plant by MadoquaPower2X in Portugal

Tecnimont awarded FEED contract for a green hydrogen and ammonia plant by MadoquaPower2X in Portugal

Construction Front Team by Construction Front Team
February,2024
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Tecnimont has secured a Front-End Engineering Design (FEED) contract from MadoquaPower2X to design an integrated green hydrogen and green ammonia plant in the industrial zone of Sines, Portugal.

The MadoquaPower2X project aims to produce green hydrogen using alkaline-water electrolyzer technology and green ammonia through the Haber-Bosch process. The green ammonia will be transported via pipeline to the Port of Sines for export or use as maritime fuel.

MadoquaPower2x – Project Details

MadoquaPower2X, a consortium comprising Madoqua Renewables, Power2X, and Copenhagen Infrastructure Partners (CIP), plans to leverage renewable energy and 1 GW of electrolysis capacity to annually produce 150,000 tons of green hydrogen and 300,000 tons of green ammonia on a large scale.

The project aligns with the highest environmental and safety standards and contributes to economic growth, meeting the EU Taxonomy’s criteria for sustainability and enhancing independent power infrastructure in Portugal’s Sines industrial zone (ZILS).

Tecnimont secures FEED contract for a green hydrogen and ammonia plant by MadoquaPower2X in Portugal
Sketch of the MadoquaPower 2X future facility in Sines, Alentejo, Portugal (source: madoquapower2x.com)

MadoquaPower2x – Green Hydrogen and Green Ammonia Production

The project employs proven alkaline-water electrolyzer technology for green hydrogen production and the Haber-Bosch process for green ammonia production.

Renewable energy will drive the project, with the electricity primarily sourced from a dedicated renewable energy community. This community includes specific solar and wind assets currently in development in Portugal, ensuring a secure and consistent renewable power supply throughout the project’s lifecycle.

  • The produced hydrogen will be conveyed through the local hydrogen grid, providing a versatile energy source for local entities and potentially blending into the natural gas grid.
  • Meanwhile, green ammonia will be transported via pipeline to the Port of Sines for export or maritime fuel use, presenting an appealing solution for European green fertilizer manufacturing.

Related Project and News – Green Energy Projects in Europe

  • Technip Energies will be the FEED Contractor for the Viking CCS project in the UK
  • Fluor to provide FEED services for Swedish Battery Developer Altris AB
  • CIP launches Copenhagen Energy Islands (CEI) to focus on energy island projects

MadoquaPower2x and Tecnimont – FEED Contract

The award of this FEED contract follows a prior PRE-FEED conducted by NextChem Tech, MAIRE’s Sustainable Technology Solutions subsidiary, showcasing the collaborative strengths and cross-disciplinary approach underpinning MAIRE’s position as a leading Integrated Technology and E&C solutions provider.

Tecnimont’s responsibilities encompass the design of:

    • Integrated electrolyzers,
    • Air separation units for nitrogen production, 
    • Ammonia production plants, and
    •  Associated storage and ship-loading facilities.
As part of the agreement, Tecnimont will also present an Engineering, Procurement, and Construction proposal for the plant’s construction activities, with the Final Notice to Proceed anticipated by March  2024.
 

FEED, FID, Notice to Proceed, and EPC

Typically, FEED agreements include specific clauses that grant the owner (in this case, MadoquaPower2x) the discretion to exercise an option, choosing to appoint the FEED Contractor as the EPC Contractor if the project advances to a favorable Final Investment Decision (FID).

When activated, these clauses aim to maintain continuity and capitalize on the familiarity gained with project details, ensuring a smooth transition with minimized risks and streamlined decision-making.

As the EPC contractor, having been engaged in the initial design, there is an opportunity to optimize construction plans, improve design quality, and uphold cost efficiency.

This transition is often formalized through a Notice to Proceed (for construction), where the owner officially instructs the FEED Contractor to assume the role of the EPC contractor and proceed with the construction works.

Suggested Reading:

  • Front-end engineering design (FEED): What is It and How it Works?
  • What is an EPC Contract? (Key Features, Examples, and Tips)
  • Final Investment Decision (FID): What is it? How it Works? 
What happens after FID is reached
Upon reaching FID, a project will typically proceed to procurement and construction phases.
Source: mairetecnimont.com and madoquapower2x.com
Tags: contract awardEuropean Market NewsFEEDfeed contractPortugal
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