AGP Executive Report

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.

Fisheries: Portugal signed an agreement with Indonesia to recognize maritime certificates and ease recruitment of Indonesian crew. The government says without these workers, 300–400 vessels could stop operating, putting about €50 million in annual turnover at risk. Defence Procurement: Lisbon is again weighing the F-35 alongside European fighters to replace its ageing F-16 fleet, in a potential €5 billion purchase; no formal competition has begun. AI: Portugal must catch up in the AI race, the development bank’s chief warned, highlighting pressure on businesses and policymakers to accelerate adoption. Textiles: Ferreira de Sá, the Portuguese rug maker exporting about 90% of production to more than 60 markets, is opening its handwoven products to U.S. designers. Critical Materials: A tungsten mine’s proposed EU strategic-project status is being described by its operator as important for Portugal. Food Production: Poultry group Lusiaves has acquired Spanish producer Padesa, extending its Iberian footprint. Infrastructure: The government is pushing for Lisbon’s new airport to open in 2034.

Investment: Portugal’s inaugural Investment Forum wrapped up in Porto after nine days, bringing together more than 300 guests, including 150 investors and family offices, to discuss turning strong growth into lasting prosperity. AI and Finance: Development Bank chief Gonçalo Regalado warned Portugal’s AI adoption rate is about 11%, far below Denmark’s 42%; the bank expects its financing to generate €8 billion in economic impact this year. Clean Energy: Thyssenkrupp nucera plans to open an electrolyzer-cell assembly hub in Portugal, while the EU’s latest list of strategic raw-material projects includes Portuguese sites. Mining: Residents of Covas do Barroso blockaded access to land targeted by Savannah Resources’ lithium project, saying they have exhausted other ways to protect local farmland. Energy Trade: An international tribunal found a Venture Global unit breached its contract with Galp over delayed LNG deliveries. Economic Outlook: The Bank of Portugal raised its 2026 growth forecast to 2.3%.

Aviation Services: Nayak Aircraft Services has acquired a controlling stake in Portugal’s LAS Group, adding nearly 100 staff and line-maintenance operations at five airports, from Lisbon to Madeira. Tax Fraud: European authorities detained 62 people in Portugal, Spain and Italy over an electronics VAT fraud that allegedly cost the EU at least €410 million. Defence: Portugal is seriously considering the US F-35 to replace its ageing F-16 fleet, while keeping other options open. Advanced Materials: Selenis bought Greek producer Polisan Hellas’s assets for installation in Portugal, helping lift its specialty copolyester capacity above 200,000 tonnes a year by 2028. Clean Energy Manufacturing: Thyssenkrupp nucera plans to establish a European electrolyser-cell assembly hub in Portugal, adding to the country’s role in the hydrogen supply chain. Mining: Savannah Resources is close to a second offtake deal for its Portugal lithium project.

Energy Manufacturing: Thyssenkrupp nucera plans to establish a central electrolyser-cell assembly hub in Portugal, bringing a new clean-energy manufacturing investment to the country. Mining: Savannah Resources is nearing a second offtake deal for its Portuguese lithium project, a potential step toward securing buyers for the strategic mineral. Defence: Lisbon is seriously weighing US F-35 jets to replace its ageing F-16 fleet, while also considering European alternatives. Payments: Mastercard will require new cards and terminals across Europe to support offline payments from 2027, addressing a vulnerability exposed by the 2025 blackout in Portugal and Spain. Technology and Infrastructure: Porto researchers are using AI and drones to detect railway bridge defects, applying new tools to infrastructure inspections. Food Industry: Portuguese poultry group Lusiaves has acquired Spanish producer Padesa, extending its cross-border expansion. Economic Outlook: The Bank of Portugal raised its 2026 growth forecast to 2.3%.

Lithium: Savannah Resources is nearing a second long-term sales deal for its Barroso project in northern Portugal, a key step toward financing the planned mine. Economic Outlook: The Bank of Portugal raised its 2026 growth forecast to 2.3%, citing EU recovery funds and stronger exports. Energy: Galp joined Equinor in winning an exploration block in Brazil’s latest pre-salt oil auction. Food Industry: Poultry group Lusiaves has acquired Spanish producer Padesa, extending its Iberian expansion. Digital Infrastructure: Portugal has confirmed 44 new data centres, but their locations remain undisclosed as concerns grow over water demand. Transport: The government is pushing for Lisbon’s planned new airport to open in 2034.

Digital Industry: DKV Mobility is building a Porto data-and-AI hub for fleet, charging and refuelling services, with 50 jobs planned by year-end and about 150 by the end of 2027. Green Manufacturing: thyssenkrupp nucera plans to invest €10m–€14m in Vila Nova de Gaia for its first company-run European electrolyser assembly site. Construction is due to start this winter, with production expected in 2028 and €3.7m in Portuguese support. E-mobility: Portuguese operator Powerdot and Hubject have enabled app-free charging at more than 7,000 points across France, Spain, Belgium and Poland. Food Production: Lusiaves has acquired Spain’s Padesa, extending the Portuguese poultry group’s Iberian expansion. Infrastructure Pressure: Portugal has confirmed 44 new data centres, but undisclosed locations are raising concerns about pressure on the Tagus River. Energy Storage: Portuguese group TagEnergy’s 240MW/480MWh battery is now France’s largest operational storage project, expanding its clean-energy footprint.

Rail Infrastructure & AI: Porto researchers are trialling Digi4RailBridges, using drones, laser scanning and AI to spot early deterioration in railway bridges on the Lisbon–Porto North Line, feeding a digital model to plan inspections and repairs sooner. Aviation & Regional Industry: SATA Group is prioritising fleet stability and reliability as it moves forward with the privatisation of SATA Internacional-Azores Airlines, with Air Açores focused on resilience across rapidly changing Azores weather. Energy Transition & Storage: Zelestra and EDP signed new long-term PPAs in Spain to expand hybrid utility-scale solar plus battery storage, adding 462 MWh of storage alongside 181 MW of solar capacity. Circular Economy Retail: Ikea will pilot an online buyback service in Spain and Portugal, offering vouchers for secondhand furniture and aiming to scale participation in the pre-owned market. Manufacturing & Mobility Tech: SkyDrive launched a joint initiative with Kansai enterprises (including MUFG) to evaluate commercial deployment and operations for compact eVTOL aircraft in Western Japan. Sustainability Claims: Friend of the Sea rolled out updated certification labels with sector-specific claims and unique FOS IDs, aligned with stricter EU rules on environmental communication. Industrial Policy & Housing (Spain): Spain approved new housing decrees, including eviction protections and interest-free loans for first-time buyers, as the government pushes housing reform ahead of elections.

Data Centres & Water Stress: Environmental groups in Portugal are challenging two planned mega data centres in Abrantes, warning about energy use, water availability for cooling, land take, noise and heat-island effects, and calling for a single cumulative Environmental Impact Study covering both projects. EV Policy Fight: Across the EU, battery-electric sales are accelerating, but Brussels is set for a policy showdown as lawmakers debate CO2 rules and whether renewable fuels should count alongside battery electrics. Energy Market Volatility: Spain and Portugal logged record hours of negative electricity prices in Q2, driven by strong solar output, while the market’s flexibility limits are being tested. Housing & Rent Politics: Portugal’s PM says negotiations on the controversial rent law are being separated from the State Budget, aiming to balance access to housing with supply to moderate prices. Aviation Innovation: Four Portuguese-linked start-ups were selected for the World Aviation Festival’s Lisbon start-up final, pitching AI tools for flight shopping, airport boarding and airline ancillary revenue. Labour Mobility: Israel will halt private recruitment of construction workers from Sri Lanka and India from 1 Jan 2027, while keeping Portugal on an approved list. Transport Infrastructure: Portugal is pushing ANA to bring forward Lisbon’s new Luís de Camões Airport opening target to 2034, earlier than the operator’s timetable. Industrial Action: AIMA staff in Portugal are striking over pay, working conditions and career structure, adding pressure to public services. Textiles & Trade Rules: Portugal’s clothing industry association argues EU parcel fees for non-EU e-commerce are too low, calling for fairer competition and better cost-sharing for sustainability.

Hospitality & Skills: Portugal hosts the ASI Best Sommelier of the World contest again after decades, spotlighting how sommeliers connect guests to moments “with care and intention,” not just product knowledge. Portugal Business & Industry Events: SBC Summit Lisbon extended its hosting deal through 2030, keeping FIL and MEO Arena at the centre of the city’s international congress push. Payments & iGaming Tech: Yaspa won Payment Solution of the Year at the SBC Awards 2026, underlining how betting and gaming is driving fintech innovation. Carbon Markets & Trade Links: Macao’s MEX listed 30+ projects from Portuguese- and Spanish-speaking countries, reporting 14.1m tonnes of CO2 reductions and expanding cross-border environmental finance links. Cybersecurity for Critical Systems: Microsoft issued out-of-band fixes for a high-severity Microsoft Exchange Server flaw that could let authenticated attackers read other users’ mailboxes. Textiles Manufacturing in Portugal: Danish FashionTech Rodinia Generation raised €4m to build its first commercial-scale facility in Portugal in 2027, aiming for faster, lower-footprint production closer to demand. Energy & Data Centers: Jera, Dell and Rhaelm plan behind-the-meter AI infrastructure in Japan, with a Chiba project targeting up to 400MW and start around 2028.

Energy Support for Transport: Portugal has approved a €38m package to cushion surging fuel costs, extending a 10-cent-per-litre diesel subsidy through year-end and targeting freight, road passenger transport, taxis, firefighters and social-sector operators. Arctic Security Diplomacy: US Secretary of State Marco Rubio is set to visit Iceland to discuss economic and security cooperation, as Washington steps up Arctic presence following a security pact with Denmark and Greenland. EU Budget Fight for Industry & Farms: Seventeen EU states, including Portugal, are urging the Irish EU presidency to protect cohesion and CAP funding in the 2028–2034 Multiannual Financial Framework, warning cuts would weaken the EU’s economic and social model. Payments Infrastructure Push: European payments schemes are forming a new cross-border network to reduce reliance on US card rails, with Portugal’s MB WAY among the founding members aiming for instant account-to-account interoperability. Portugal Tech & Industry Link: Jacobs says it is deploying NVIDIA digital-twin and high-performance computing work tied to its broader data-centre and industrial infrastructure portfolio, including support for Portugal’s SINES DC Campus. Fuel Price Pressure at Ground Level: Farmers have been protesting on the Portugal–Spain road over fuel costs, highlighting how energy prices are feeding into logistics and production disruption.

Energy & Grid Flexibility: A European project called DriVe2X is testing “vehicle-to-grid” tech that lets parked EVs feed electricity back to the grid, including trials in Porto and at hotels on the Isle of Wight. EU Budget & Farming: Seventeen EU leaders are urging the Irish presidency to protect farm funding and cohesion spending, pushing back against proposed cuts. Portugal-US Defence Oversight: Portugal has opened a probe into US use of the Lajes base ahead of the Iran war, adding pressure on transparency around military operations. Real Estate in Lisbon: Kronos Homes’ Distrikt residential project in Parque das Nações won Best Real Estate Project at the World Class District Awards 2026. Industrial Finance Watch: Revolut has surged to a $115bn valuation, positioning itself as a major challenger to traditional European banks while still facing profitability and lending-scale hurdles. Maritime Security: A new wave of Red Sea disruptions is being framed as a lasting shift in global shipping risk, with knock-on effects for energy supply chains. Construction & Local Impact: A £30m hotel complex in Wales has stalled again amid developer disputes, highlighting how infrastructure delays can quickly become economic and reputational problems.

Portugal-US Defence Oversight: Portugal’s Public Prosecutor has opened an inquiry into whether the US used Lajes Air Base lawfully before the Iran war, after a Left Bloc complaint questioned compliance with Portuguese and international rules. EU Budget Fight for Industry & Farms: Seventeen EU leaders, including Portugal, urged Ireland’s rotating presidency to protect CAP and Cohesion funding in the next EU budget, warning cuts would weaken the bloc. Green Cities Watch: The EU’s Green Capital/Green Leaf finalists include Porto and Estarreja, with winners due 8 October in Guimarães. Cybersecurity for Critical Services: Warlock ransomware is still exploiting year-old SharePoint flaws to breach water utilities, telecoms, governments and universities, including targets across Portuguese/Spanish-speaking regions. Aviation Disruption: easyJet cancelled two return flights between Manchester and Portugal due to a strike by Portugal-based cabin crew, with around 500 flights expected to be affected. Energy & Logistics Context: A Luanda summit on transport and logistics focused on rail, ports, digitalisation and private investment, aiming to cut costs and boost capacity. Fintech Competition: Reuters reports Revolut’s push to become a global bank after reaching a $115bn valuation, challenging traditional lenders.

Cybersecurity & Critical Infrastructure: The Warlock threat actor is still exploiting Microsoft SharePoint flaws to hit critical infrastructure, government and education in Portuguese- and Spanish-speaking countries, with ransomware deployments tied to ToolShell-style weaknesses. EU Budget & Agriculture: Seventeen EU leaders, including Portugal, urged Ireland’s rotating presidency to protect farm funding and keep Cohesion Policy and the CAP intact in the 2028–2034 EU budget talks. Portugal Business & Compliance: Football Leaks whistleblower Rui Pinto faces losing witness protection in Portugal after Manchester City’s Premier League financial-rule breaches verdict, raising urgent housing and safety concerns. Lisbon Events & Tourism: SBC Summit has signed a long-term deal to stay in Lisbon until at least 2030, extending support for 2028–2030 with venues including FIL and MEO Arena. Energy & Industry: Greece is drawing institutional property investors with income yields around 6.25% versus ~4.2% on 10-year bonds, boosting interest in offices, logistics and retail.