TotalEnergies SE (NYSE:TTE) partnered with L’Air Liquide SA (OTC:AIQUF) to develop two green hydrogen projects in the Netherlands with a total investment of around 600 million euros ($627.85 million).
In particular, both companies have agreed to establish a 50/50 joint venture to build and operate a 250 MW electrolyzer near the Zeeland refinery.
The project, set for commissioning in 2029, will produce up to 30,000 tons of green hydrogen annually and reduce CO2 emissions by up to 300,000 tons per year.
Powered mainly by renewable energy from the OranjeWind offshore wind farm, these projects will produce 45,000 tons of green hydrogen annually, cutting CO2 emissions from refineries in Belgium and the Netherlands by up to 450,000 tons per year.
The transaction will advance Europe’s renewable energy goals in transportation. The partners have applied for European and national subsidies and will seek additional project funding.
Moreover, as part of Air Liquide’s 200 MW ELYgator electrolyzer project in Maasvlakte, Netherlands, TotalEnergies inked a tolling agreement for 130 MW to produce 15,000 tons of green hydrogen annually for its Antwerp platform.
Under this agreement, TotalEnergies will supply renewable electricity from the OranjeWind project to Air Liquide, which will convert it into green hydrogen.
Set to be operational by late 2027, the project is expected to cut CO2 emissions at the Antwerp site by up to 150,000 tons per year.
Vincent Stoquart, President, Refining & Chemicals at TotalEnergies, said, “Following the first partnership agreement with Air Liquide to supply the Normandy refinery with green hydrogen, and the agreements to supply the Grandpuits and La Mède biorefineries with renewable hydrogen, the partnership with Air Liquide takes on a new dimension and marks a new step in TotalEnergies’ ambition to decarbonize the hydrogen consumed by its refineries in Europe by 2030.”
“By supplying these two electrolyzers with renewable electricity from our offshore wind project in the Netherlands, TotalEnergies is leveraging its positioning as an integrated electricity company.”
Read:
Investors can gain exposure to the stock via Octane All-Cap Value Energy ETF (NASDAQ:OCTA) and The 2023 ETF Series Trust II GMO International Value ETF (NYSE:GMOI).
Price Action: TTE shares are up 0.85% at $61.93 premarket at the last check Tuesday.
Read Next:
- US Stocks Likely To Open Lower Following Alphabet, AMD Earnings: Walt Disney, Uber, Ford, Qualcomm In Focus
Photo via Shutterstock.
