Europe's Green Hydrogen Era Begins at Portugal's Sines Refinery

SLINGERLANDS, NY – January 23, 2026 – In a move that signals a major turning point for Europe's energy transition, Plug Power Inc. has completed the installation of a 100-megawatt (MW) green hydrogen plant at Galp's Sines Refinery in Portugal. The project, one of the largest of its kind on the continent, marks a tangible leap from ambition to reality in the quest to decarbonize heavy industry.

The successful installation of all ten of Plug Power's GenEco™ PEM electrolyzer arrays on site concludes a rapid deployment phase that began in October 2025. With commissioning expected to start in the coming months, the facility is poised to become a cornerstone of Europe's burgeoning hydrogen economy. Once fully operational, it is projected to produce up to 15,000 tons of renewable hydrogen annually, providing a powerful tool to clean up one of the most carbon-intensive industrial processes.

A Landmark for Industrial Decarbonization

The Sines Refinery, operated by the Portuguese energy firm Galp, is a critical piece of national infrastructure, processing around 225,000 barrels of oil per day. Like all refineries, it relies heavily on hydrogen for processes like desulfurization, but has traditionally used carbon-intensive "grey" hydrogen produced from natural gas. The new facility will change that paradigm.

The 15,000 tons of green hydrogen produced on-site will replace approximately 20% of the refinery’s current grey hydrogen consumption. This single change is expected to reduce the facility's greenhouse gas emissions by an estimated 110,000 tons annually—an impact equivalent to removing tens of thousands of gasoline-powered cars from the road. This direct substitution of green for grey hydrogen offers a clear and scalable pathway for decarbonizing so-called "hard-to-electrify" sectors.

“This installation demonstrates that large-scale green hydrogen is not just possible, it’s happening today and Plug is instrumental in this effort,” said Jose Luis Crespo, President and Chief Revenue Officer of Plug. “The completion of the Sines Refinery project is a defining moment for Europe’s energy transition and a model for the decarbonization of hard-to-electrify industrial sectors.”

For Galp, the project is a central pillar of its strategy to transform the Sines industrial complex into a "Green Energy Hub," allocating roughly 35% of its 2025-2026 capital expenditure to low-carbon initiatives. Ronald Doesburg, the Executive Board Member responsible for Galp’s industrial activities, called it a "historic moment for European refining" and a "key step in the development of a new generation of low-carbon fuels."

Backed by Policy and Strategic Investment

The Sines project is not merely a corporate venture; it is underpinned by a robust framework of public policy and strategic financial backing. The total investment for the 100 MW electrolysis plant is estimated at around €250 million, a significant portion of which is supported by a €180 million loan from the European Investment Bank (EIB). This financing is part of a larger package supporting Galp’s ambitious €650 million plan to build out its Green Energy Hub, which also includes facilities for sustainable aviation fuel (SAF).

The project's strategic importance is recognized at both national and continental levels. It directly contributes to Portugal’s National Energy and Climate Plan (PNEC 2030), which targets 5.5 GW of electrolyzer capacity by the end of the decade. Furthermore, it aligns perfectly with the EU's overarching goals, including the REPowerEU plan's target of producing 10 million tonnes of renewable hydrogen domestically by 2030. This synergy between corporate action and public policy provides the regulatory certainty needed to de-risk such large-scale capital investments.

The Technology Powering the Transition

At the heart of the Sines project are Plug Power's GenEco Proton Exchange Membrane (PEM) electrolyzers. While traditional alkaline electrolyzers have a longer history, PEM technology offers distinct advantages for a project of this nature. PEM systems are known for their high efficiency and, crucially, their ability to ramp up and down quickly. This dynamic response makes them ideal for pairing with intermittent renewable energy sources like solar and wind, which are abundant in Portugal.

Moreover, PEM electrolyzers operate at higher current densities, allowing for a more compact physical footprint—a significant benefit when integrating new systems into an existing industrial site. The 100 MW Sines facility represents a major leap in scale for deployed PEM technology, which has previously been limited to projects in the 20 MW range. Its successful operation will serve as a critical proof point for the technology's readiness for industrial-scale deployment.

Plug Power has highlighted its resilient global supply chain, which integrates components manufactured across the U.S., Europe, and the Middle East, with the GenEco modules for Sines being produced in the United Arab Emirates. This distributed manufacturing approach is designed to ensure the company can meet soaring global demand.

A European Strategy Takes Root

The Sines installation is a cornerstone of Plug Power's strategic expansion in Europe, which the company identifies as one of its most important markets. “Projects like Sines underscore why Europe remains one of Plug’s most important strategic markets,” noted Benjamin Haycraft, Chief Strategy Officer at Plug. “This milestone demonstrates our ability to deliver real infrastructure that advances Europe’s energy transition and strengthens long-term energy resilience.”

The company is pursuing a $2 billion global opportunity funnel for electrolyzer projects and is planning multi-gigawatt deployments across the continent, including in Spain and the U.K. The success at Sines provides a powerful, real-world case study for other industrial giants contemplating their own decarbonization journeys.

As Europe races to build a mandated market for green hydrogen to meet its 2030 climate targets, first-mover projects like this are invaluable. The performance data and operational learnings from the Sines facility's first months will be scrutinized by industry analysts, policymakers, and competitors alike. The successful commissioning at Sines will not just be a victory for the companies involved, but a powerful signal that Europe’s green industrial revolution is well and truly underway.