CEF Energy: paving the way for a green shipping corridor from Portugal to Northern Europe

Europe is moving steadily towards a cleaner, more sustainable, and decarbonised industry, and the Madoqua Green Fuels Terminal is a flagship example of this transition. Located near the Port of Sines in Portugal, this ambitious project aims to build a strategic hub for storing and refuelling ships with future fuels like green hydrogen, ammonia, and e-methanol, as well as handling biogenic CO₂ to support emerging carbon capture and storage (CCS) value chains.

The terminal will include electrified storage tanks, loading arms, and pipelines designed for large vessels, all powered by renewable energy. Around 120 MW of renewable energy will be used to power the terminal and support the broader energy needs of the port.

EU support to move from vision to reality

Supported by CEF Energy under the window for cross-border renewable energy projects with a grant of EUR 200,000, between June 2024 and June 2025 the project completed a comprehensive feasibility study confirming its technical and economic viability. This vital first step was instrumental in advancing the project towards detailed engineering and future construction, as the study included detailed technical designs, plans for using renewable energy, and business models to attract future investments.

Strengthening European cooperation and climate action

In parallel, the project secured strong international stakeholder support achieved through two strategic Memoranda of Understanding: one between Madoqua, the Port of Sines, the Port of Rotterdam, and Duisport; and another with stakeholders from across the renewable energy and shipping value chains. These alliances will help establish a dedicated green shipping corridor between Portugal and Northern Europe — enabling the deployment of zero-emission ships and the large-scale transport of sustainable fuels and CO₂.

The project also supports EU climate goals and legislation like the FuelEU Maritime directive, which drives demand for green fuels and electrification in ports. By developing renewable-powered storage and refuelling infrastructure in export hubs like Portugal and connecting to major import ports in Northern Europe, the terminal sets a model for green shipping corridors across Europe.

Beyond serving as a logistics hub, the terminal is expected to unlock large-scale renewable energy deployment throughout Europe, accelerating the production of green hydrogen, ammonia, and e-methanol. The infrastructure will help link renewable generation in southern Europe with key import hubs such as Rotterdam, Antwerp, and Duisburg, supporting the continent’s energy transition and strengthening energy security.

The Madoqua Green Fuels Terminal is a strong example of how EU funding through CEF Energy is turning climate goals into concrete projects and investing in a more sustainable, innovative, and competitive future.