With a total investment expected to reach €500 million over several phases, the project aims to transform the long-abandoned mining site into a hub for renewable energy production. The initial phase focuses on solar energy, but future plans include wind energy, green hydrogen production, and pumped hydroelectric storage, representing a significant step toward sustainable energy solutions in Portugal.

The project’s developers, who took over the land in 2023 through La Sabina Green Energies, are committed to producing clean energy while restoring the damaged environment around the former mining site. Historically, São Domingos was a major mining area during the Roman era, and later, between the 19th and 20th centuries, under the English company Mason & Barry. The mine produced significant quantities of copper, gold, and silver before its closure in 1966. While mining operations have long ceased, the area remains heavily contaminated, and the company is working with the public agency Empresa de Desenvolvimento Mineiro (EDM) to address the environmental legacy of the site.

For the German investors, the goal is clear: harness the region’s natural resources—its ample sunshine and wind—to generate clean energy, while contributing to the ecological recovery of the land. In the first phase of the project, the team plans to build a 100 MW solar power plant, which is expected to cost €28 million. This phase, currently in the licensing process with the Direção-Geral de Energia e Geologia (DGEG), marks the beginning of a long-term, multi-phase initiative that includes plans for wind energy and green hydrogen production.

The team has clarified that their focus is solely on renewable energy and not mining. Although the property includes the mineral rights-rich São Domingos site, the investors have stated that they are not interested in pursuing any mining activities, stressing that their objective is to develop energy solutions that align with modern sustainability goals. They aim to utilize the land for solar and wind projects while helping to heal the soil, which has been heavily eroded and contaminated over time.

In collaboration with EDM, the German investors are supporting ongoing efforts to decontaminate the site, which will require a total of €20 million and four additional phases to complete. The land, which spans approximately 2,000 hectares, offers the ideal conditions for solar and wind energy production, but parts of it are still undergoing treatment to remove harmful pollutants left behind by decades of mining activities.

One of the key components of the project, beyond solar power, is the eventual development of green hydrogen production. In later phases, the investors plan to build an electrolysis plant with a 7.5 MW capacity, capable of producing green hydrogen for the Portuguese market. This technology, which uses electricity generated by renewable sources to split water molecules and create hydrogen, could significantly contribute to Portugal’s transition to cleaner energy. The hydrogen produced could be used for various industrial applications, potentially offering a low-carbon alternative to traditional fossil fuels.

Wind energy will also play a central role in the project’s future phases. After the solar plant is established, the team plans to develop a wind farm with an initial capacity of 80 MW. This wind energy will further diversify the renewable portfolio at the São Domingos site, taking advantage of the region’s strong and consistent wind patterns.

In addition to generating renewable energy, the project will also explore pumped hydroelectric storage as a means to store excess electricity. The plan is to use the existing mine infrastructure, including its underground reservoirs, to pump water during periods of low energy demand and release it during peak times to generate electricity. This method ensures a reliable supply of energy, even when solar and wind production fluctuates due to weather conditions.

Moreover, the investors are investigating ways to integrate agricultural activities with the renewable energy installations. One idea being explored is the recultivation of the land beneath the solar panels using artificial soil. This could allow for certain types of crops or grazing animals, helping to regenerate the soil and further enhance the project’s sustainability credentials.

The full scope of the renewable energy project at São Domingos is extensive. In its final stages, the development will include 500 MW of solar capacity, 50 MW of wind power, and a 100 MW electrolysis plant capable of producing between 9,000 and 10,000 tons of green hydrogen annually. The total investment is projected to reach €500 million, spread across two to three phases over the coming years.

In summary, this German-led initiative at São Domingos mine represents a forward-thinking approach to renewable energy development in Portugal. With a strong emphasis on sustainability, environmental restoration, and energy innovation, the project promises to be a vital contributor to the country’s renewable energy goals while offering a model for the responsible repurposing of former industrial sites.

Author

Paulo Lopes is a multi-talent Portuguese citizen who made his Master of Economics in Switzerland and studied law at Lusófona in Lisbon - CEO of Casaiberia in Lisbon and Algarve.

Paulo Lopes