AGP Executive Report

Housing and Workforce: Tents went up in Lisbon as protesters demanded action on housing costs; prices rose 124% nationally from 2015 to 2024. Loulé has also called for emergency powers, warning that workers are being priced out of the Algarve. Energy Costs: European diesel prices are up 50% since February and gas prices have more than doubled. Portugal is among countries considering windfall measures on oil profits, as ministers push for an EU-wide approach. Green Industry: Siemens and Galp are preparing a 100MW renewable hydrogen plant in Sines, targeting up to 15,000 tonnes of annual output and 110,000 tonnes of emissions savings. Researchers in Braga have also developed a hydrogen catalyst using about half the precious metal of a commercial benchmark. Transport: Lufthansa was selected to buy a €1.2bn stake in TAP, with further privatisation possible by 2028. Portugal has also begun construction of its first high-speed rail line.

Trade: Portuguese companies are preparing to showcase products at China’s Import Expo, which the Portugal-China Chamber of Commerce calls a valuable route to sales and new customers. TAP: Lufthansa has won the contest to acquire a stake in Portugal’s flag carrier with a €1.2 billion bid; the airline’s union says workers must not be left to rescue the business again. Clean Energy: Siemens and Galp will use digital-twin and analytics technology at Galp’s planned 100 MW green hydrogen plant in Sines. Infrastructure: Construction has begun on Portugal’s first high-speed rail line, a major transport investment. Technology: Portuguese drone maker TEKEVER is expanding into Germany, building on demand for its systems. Industry Costs: Diesel prices are set to rise by 4.5 cents a litre next week, adding pressure on transport and logistics operators.

Electric Mobility: Porto’s Hybrid and Electric Vehicle Show opened as rising fuel costs accelerate the shift to electrified cars, with Geely making its Portuguese debut and major brands offering test drives. Diesel prices are also set to rise next week. Food Industry: Portugal’s Cerealis and France’s Panzani are in talks to combine, potentially creating a €1.8 billion European food group with about €1 billion in annual revenue and 1,800 employees. Aviation: Lufthansa has secured the right to acquire a 44.9% stake in TAP for about €1.2 billion, with further talks on a possible purchase of the remaining shares. Green Hydrogen: Siemens and Galp are partnering on digital-twin and analytics technology for Galp’s planned 100MW green-hydrogen plant at Sines. Drone Technology: An EU-funded trial near Troia demonstrated aircraft navigation without satellite signals, a step toward more resilient drone operations.

Fuel Costs: Diesel prices in Portugal are forecast to rise 4.5 cents a litre next week, adding pressure on transport operators and other businesses; petrol is expected to fall slightly. Energy Supply: EU purchases of Russian LNG jumped 60% in September, with some shipments delivered to Portugal despite the bloc’s push to phase out Russian energy. Aviation: Portugal selected Lufthansa to buy a 44.9% stake in TAP for about €1.2 billion, with further privatisation possible by 2028. Clean Industry: Siemens and Galp are partnering to advance renewable hydrogen production. Transport Infrastructure: Construction has begun on the high-speed rail line linking Lisbon and Porto. Critical Minerals: The EU designated Allied Critical Metals’ Borralha tungsten project as strategic, potentially improving its access to funding.

TAP Privatisation: Portugal has selected Lufthansa to buy up to 49.9% of the airline for as much as €1.201 billion, while the state retains a majority stake. TAP’s main union says workers must not be left to rescue the carrier again and flags concerns over maintenance and engineering operations. Renewable Hydrogen: Siemens will digitalise Galp’s planned 100MW renewable hydrogen facility, supporting a major step in Portugal’s clean-energy ambitions. Critical Minerals: The EU has designated the Borralha tungsten project a Strategic Project—the only tungsten extraction project in its latest 46-project round—opening access to faster permitting and potential financing. Digital Infrastructure: An EU-backed joint venture involving Orange, Equitix and MDM will build the 3,125km Pisces subsea cable, linking Ireland with France, Spain and Portugal, including Carcavelos. Transport: Construction is under way on Portugal’s first high-speed rail line, connecting Lisbon and Porto.

Industrial Output: Portugal’s industrial production fell 2% in August, the EU’s steepest monthly decline, as euro-area output dropped for a third straight month. Food Retail Cybersecurity: France’s supermarket refrigeration attack has widened to Copeland and Dixell controllers; reports say affected systems also reached Portugal, raising concerns for food retailers. TAP Privatisation: Portugal selected Lufthansa for a stake of up to 49.9% in TAP, in a deal worth up to €1.2 billion. Lufthansa expects completion in 2028 and says separate talks are under way on the government’s remaining 50.1%. Green Hydrogen: Siemens will digitalise Galp’s planned 100MW renewable hydrogen facility in Sines, using digital-twin and analytics tools. Rail Construction: Work has begun on Portugal’s first high-speed rail line, a major infrastructure project. Agriculture: Portuguese farmers are seeking a €140 million package to offset rising costs.

Aviation: Portugal has selected Lufthansa to buy a 44.9% stake in TAP for €1.2 billion, beating Air France-KLM. The state will retain control, with the deal subject to approval and completion expected by 2028. Infrastructure: Construction has begun on Portugal’s first high-speed rail line, a major step for the country’s transport network. Clean Energy: Siemens will digitalise Galp’s planned 100 MW renewable hydrogen facility, supporting the project’s operations. Industrial Safety: A worker has died at a wind-turbine tower factory in Portugal; further details have not been reported. Business Costs: Rising oil and fuel prices are adding pressure on Portuguese households and firms, with transport costs pushing up prices across the economy.

Workplace Safety: A worker died after being crushed by a metal plate at CS Wind’s turbine-tower factory in Aveiro. Separately, three Romanian workers died from toxic fumes at a construction site in Quinta do Lago; both incidents are under investigation. Public Transport: A 24-hour strike shut Lisbon’s entire Metro network on Wednesday, with service due to resume Thursday morning. Green Industry: Siemens is digitalizing Galp’s 100 MW renewable hydrogen plant in Sines, using software designed to improve operations and target energy savings. Connectivity: Orange and partners plan a 3,125 km subsea cable linking Ireland, France, Spain and Portugal, with a landing station at Carcavelos and partial EU funding. Aviation: Lufthansa beat Air France-KLM to a 44.9% stake in TAP, reportedly paying €1.2 billion; Portugal says priorities include fleet investment, connectivity and expanding maintenance and engineering. Rail: Construction has begun on the high-speed line linking Lisbon and Porto.

Power Grid Resilience: E-REDES has selected Tait Communications and local partner Tecradio to replace its analogue network with a nationwide digital system, supporting emergency voice and data services across 42 sites. Energy and Transport: Siemens will digitalise Galp’s planned 100MW renewable hydrogen plant, while construction has begun on the high-speed rail link between Lisbon and Porto. Business Outlook: The IMF has raised its Portugal growth forecast to 2.1%; meanwhile, the government is nearing a decision on a sale of its TAP stake. Agriculture: Farmers are seeking a €140 million support package to offset rising costs. Industrial Technology: Portuguese drone maker TEKEVER is expanding into Germany, extending its presence in a fast-growing defence market. Food Supply Security: Portugal was among the countries where supermarket refrigeration controls were affected by a cyberattack that spoiled food across Europe, highlighting risks to connected cold-chain systems.

Food Supply Security: Reports say the cyberattack that overheated supermarket fridges across Europe also affected Portugal, though no Portugal-specific store count has been disclosed. Rail Investment: Construction has begun on the high-speed line linking Lisbon and Porto. Agriculture: Portuguese farmers are seeking a €140 million package to offset rising costs. Clean Energy: Siemens will digitalise Galp’s 100MW renewable hydrogen plant in Sines, expected to start operating by year-end. Medical Manufacturing: INFARMED approved Tilray Medical’s Cantanhede facility to carry out quality testing in-house, supporting faster product releases. Equipment Rental: Portugal is among Southern Europe’s stronger markets, with infrastructure, logistics and data-centre investment lifting demand.

Rail Infrastructure: Construction has begun on the first section of Portugal’s Lisbon–Porto high-speed line, a 71km stretch between Porto and Oiã costing about €2bn. The full route is planned to cut travel time to 75 minutes. Clean Energy: Siemens will digitalise Galp’s planned 100MW renewable hydrogen plant, supporting one of Europe’s largest projects of its kind. Retail Cybersecurity: French supermarket attacks that overheated refrigeration systems may have affected Portugal, according to a cyber analyst; Danfoss says some compromised controllers used outdated firmware. Farm Costs: Portuguese farmers are demanding a €140m package to offset rising costs. Trade and Investment: Qatar and Portuguese business representatives discussed cooperation in hospitality, fintech and retail, as well as a possible bilateral business council. Industrial Innovation: Ansell has opened an Xperience & Innovation Studio in Portugal.

Climate Policy: Spain is urging the EU to keep a demanding emissions-cutting path while backing stronger support for industry’s decarbonisation, a debate with implications for Portuguese manufacturers. Renewable Hydrogen: Siemens is supplying digital tools for Galp’s 100MW Sines hydrogen plant, designed to produce up to 15,000 tonnes a year once operational, potentially by year-end. Industrial Safety: Ansell has opened a European safety and innovation centre near Coimbra, alongside its Portuguese factory, for product testing, training and collaborative development. Critical Materials: Portugal is among 16 EU countries hosting newly selected strategic raw-material projects, aimed at strengthening supply chains for clean energy and other sectors. Green Industry: Estarreja, a municipality with a chemical-industry history, won the European Green Leaf 2028 title and €200,000 for environmental initiatives. Technology: Portugal must accelerate its AI capabilities, the development bank’s chief warned, as businesses face growing pressure to adopt the technology.

AI and Growth: Portugal’s development bank chief says the country must catch up in AI, as business leaders debate how to build on its growth. Defence Procurement: Lisbon is again weighing the F-35 for its fighter replacement, alongside European options. Critical Minerals: A Portuguese tungsten mine’s selection as an EU strategic project puts the country’s mineral supply in focus. Payments Resilience: Mastercard will require new European cards and key retail terminals to support offline payments, following outages that left people in Portugal and Spain unable to pay digitally. Manufacturing Exports: Rug maker Ferreira de Sá is opening its Portuguese production to U.S. designers. Maritime Investment: Construction is advancing on a new cruise terminal in Setúbal. Cost Pressures: Thousands protested in Portugal over rising living and housing costs.

Cost Pressures: Thousands took to the streets in Lisbon and Porto over rising living costs, unaffordable housing and wages that fail to cover basic needs. Growth & Technology: The Bank of Portugal raised its 2026 growth forecast to 2.3%, while the development bank warned Portugal must catch up in AI. Clean-Tech Manufacturing: Thyssenkrupp nucera plans a central electrolyzer cell assembly hub in Portugal, a boost for the country’s role in Europe’s hydrogen supply chain. Critical Materials: Savannah Resources is close to a second offtake deal for its Portuguese lithium project, as the EU advances strategic raw-materials projects. Industry & Exports: Portuguese rugmaker Ferreira de Sá is opening production to U.S. designers, creating a new route to international customers. Transport: Air France and Lufthansa are awaiting a government decision on TAP, keeping the airline’s ownership future in focus.

Business Outlook: Portugal’s business leaders gathered to discuss how to build on growth, as the Bank of Portugal raised its 2026 growth forecast to 2.3%. The development bank chief also warned the country must catch up in the AI race. Manufacturing: Thyssenkrupp nucera plans to establish a European electrolyser-cell assembly hub in Portugal, adding clean-energy manufacturing capacity. Rug maker Ferreira de Sá is opening its Portuguese production to US designers, while poultry group Lusiaves has acquired Padesa in a move that consolidates the Iberian sector. Critical Materials: Savannah Resources is nearing a second offtake deal for its Portuguese lithium project, as Barroso’s mining plans draw renewed attention. Defence and Marine Technology: Portugal is reconsidering the F-35 as it weighs options to replace its F-16 fleet, while NATO’s REPMUS exercise in Portugal put uncrewed maritime systems through their paces. Energy: An international arbitration ruling found Venture Global delayed LNG deliveries to Galp, with potential implications for the Portuguese energy company’s supply arrangements.

Critical Materials: The EU selected 46 strategic raw-material projects across 16 member states, spanning mining, processing and recycling. Portugal’s tungsten mine has also been described by its operator as nationally important. Manufacturing: Espinho rug maker Ferreira de Sá is opening its business to US designers; it makes its rugs in Portugal and exports about 90% of production. Defence Procurement: Portugal is seriously weighing US F-35s and European alternatives to replace its aging F-16 fleet. Food Industry: Lusiaves has acquired Spanish poultry producer Padesa, extending its Iberian footprint. Technology: Portugal’s development bank chief says the country must catch up in AI, while Porto researchers are using AI and drones to inspect railway bridges. Green Transition: Estarreja won a 2028 European Green Leaf award for its shift beyond its industrial legacy.