Lightsource bp and Dourogás have agreed to form a hydrogen joint venture, which will invest in solar and hydrogen infrastructure in Portugal.

The two companies will focus on potential eight green hydrogen sites. Nearly 200MW of solar facilities developed by Lightsource bp will supply clean energy to Dourogás’ 130MW electrolysers.

The electrolysers will be designed to convert water to green hydrogen and oxygen. The hydrogen generated will be injected into Portugal’s gas grid.

Lightsource bp and Dourogás’ first project will be developed in Monforte and will receive financial backing of $5.6m (€5m) from the European Union’s Portugal 2020 fund.

Dourogás Group CEO Nuno Moreira said: “This partnership between Dourogás and Lightsource bp results from the priority that these companies place on the development of new energy green projects.

“This partnership materialises, both in technical and dimension terms, the capacity and the vision of these two companies. It is undoubtedly a step forward towards the decarbonisation of the economy to which Dourogás is committed, paving the way to a sustainable world for the next generation.”

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For Lightsource bp, the partnership is said to be the first of its kind and is expected to create more than 1000 direct and indirect employment opportunities.

Lightsource bp Portugal country head Miguel Lobo said: “Solar is scalable, quick to deploy and today, cheaper than any other form of electricity. We’ve always believed in solar as a vital tool in decarbonisation.

“When used to generate green hydrogen, it becomes an entire energy transition toolkit. The clean energy locked into these hydrogen molecules can immediately cut the footprint of industries, heavy transport and heat in ways electricity alone cannot.”

Outside of this joint venture, Lightsource bp has around 1.5GW of existing solar pipeline in Portugal.