TotalEnergies and Air Products have signed a 15-year agreement for the annual supply Europe of 70,000 tons of green hydrogen starting in 2030.
This first long-term deal follows the French energy multinational’s call for tenders for the supply of 500,000 tons per year of green hydrogen to decarbonise its European refineries.
Under the agreement, Air Products will deliver at green hydrogen from its global supply network. This hydrogen will avoid around 700,000 tons of CO2 each year.
The contract a is a first step towards achieving TotalEnergies’ objective of reducing net greenhouse gas emissions from its operated oil and gas operations (Scope 1+2) by 40% by 2030 compared to 2015 levels, said the French energy giant.
Hydrogen supplier Air Products has committed more than $15bn to large-scale energy transition projects and has launched several large low-carbon hydrogen projects across the world.
“This deal with Air Products, the first signed following the call for tenders launched last year, is a steppingstone towards our goal of decarbonizing the hydrogen used in TotalEnergies’ refineries in Northern Europe by the end of the decade,” said TotalEnergies chief executive and chairman Patrick Pouyanné.
He added: “We are proud to partner with Air Products, a pioneer in low carbon hydrogen production, under the leadership of Seifi Ghasemi.
“Once again, we demonstrate our capacity to pioneer the energy transition and contribute to the emergence of a green hydrogen industry by offering long-term contracts with our six refineries and two biorefineries in Europe.
“We are also happy to extend our partnership with Air Products by becoming ourselves a supplier of green power to Air Products and contributing to Air Products’ own decarbonization roadmap.”
Air Products’ chairman, president and chief executive Seifi Ghasemi added: “Today, one of the largest energy companies in the world has committed to use renewable hydrogen to decarbonize its refineries in Northern Europe, and we at Air Products are honoured and proud to be the producer and supplier of the green hydrogen required.
“We always believed that if we made clean hydrogen available at commercial scale, the demand would be there. This contract validates our long-term strategy.
“Clearly the demand is here, and it will grow significantly as we move forward, playing an essential role in decarbonizing heavy industry and other sectors.
“I also want to express my admiration for Patrick Pouyanné’s vision and courage in acting as a first-mover towards creating a cleaner future for the world.”
TotalEnergies and Air Products have also signed a memorandum of understanding for the supply of renewable power, which entails the signing of a first Power Purchase Agreement (PPA) for 150MW produced at a solar project in Texas.
The parties also plan to explore further PPA opportunities in the UK, Poland and France.
This agreement, which strengthens the partnership between TotalEnergies and Air Products, will contribute to Air Products‘ decarbonization roadmap and is in line with TotalEnergies’ integrated electricity strategy along the value chain, said the French outfit.