Höegh LNG and Gen2 Energy have agreed to co-operate on the development of a logistics chain for green hydrogen
While the market for seaborne transportation of green hydrogen does not exist on a large scale at present, the partnership is looking to make early inroads in anticipation of future developments. Concurrently, Höegh has agreed to acquire an unspecified minority stake in Gen2Energy.
‘Green’ hydrogen can be produced at cost-competitive levels, but several optimal production sites are at remote locations, making transport by land expensive. By transporting hydrogen at sea, the two parties aim to reduce transport costs.
Höegh LNG’s contribution will relate to the company’s experience of shipping and importing natural gas, establishing energy infrastructure and maintaining the logistics chain.
Gen2 Energy will contribute its knowledge and experience in production and safe handling of green hydrogen. The parties will also explore the use of carbon-free propulsion systems for vessels and the potential for injecting hydrogen into the natural gas transmission grids.
Gen2 Energy chief executive Jonas Meyer said the agreement brings both companies “one step closer” to the goal of providing European energy markets with fossil-free hydrogen on a large scale, adding “we are extremely pleased to engage in this important collaboration with such an experienced actor. It also fits very well with Gen2 Energy’s announcement with Port of Cromarty Firth last week, which to my knowledge was the first-ever export agreement for green hydrogen from Norway”.
Last week, the Port of Cromarty Firth signed an MoU with Gen2 Energy to develop a channel for hydrogen imports into Scotland.
Höegh president and chief executive Sveinung J S Støhle added “We are delighted to be both shareholder and a partner with Gen2Energy on seaborne hydrogen transportation. It is a critical element of the hydrogen value chain and one that Höegh LNG is uniquely positioned to serve. Gen2Energy has the potential to be one of the first large-scale suppliers of green hydrogen to market with Höegh LNG taking a leading infrastructure role.”
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