June 10, 2024 [Storage Terminals Magazine]- TotalEnergies and Air Products have entered into a 15-year agreement to supply 70,000 tonnes of green hydrogen annually to Europe, starting in 2030. This landmark deal is the first long-term contract following TotalEnergies’ tender for 500,000 tonnes per year of green hydrogen aimed at decarbonising its European refineries.
Under this agreement, Air Products will supply green hydrogen to TotalEnergies’ Northern European refineries from its global supply network, reducing CO2 emissions by approximately 700,000 tonnes annually. This contract represents a crucial step towards TotalEnergies’ goal of cutting net greenhouse gas emissions from its operated oil and gas operations (Scope 1+2) by 40 percent by 2030, compared to 2015 levels.
Air Products, a global leader in hydrogen supply, has committed over $15 billion to large-scale energy transition projects, establishing itself as a reliable supplier of low-carbon hydrogen.
“This agreement with Air Products is a significant milestone towards our objective of decarbonising the hydrogen used in our Northern European refineries by the end of the decade. We are proud to partner with Air Products, a pioneer in low-carbon hydrogen production. This deal demonstrates our ability to lead in the energy transition and foster the growth of a green hydrogen industry by securing long-term contracts for our six refineries and two biorefineries in Europe. We are also excited to extend our partnership by supplying green power to Air Products, contributing to their decarbonisation efforts,” said Patrick Pouyanné, chairman and CEO of TotalEnergies.
Seifi Ghasemi, chairman, president, and CEO of Air Products, stated, “We are honoured to supply renewable hydrogen to one of the largest energy companies globally for decarbonising its Northern European refineries. This contract validates our long-term strategy of producing clean hydrogen at a commercial scale, showing that demand is strong and will continue to grow, playing a crucial role in decarbonising heavy industry and other sectors. I commend Patrick Pouyanné for his visionary leadership in advancing towards a cleaner future.”
Additionally, TotalEnergies and Air Products have signed a memorandum of understanding for the supply of renewable power, including a Power Purchase Agreement for 150 MW from a solar project in Texas. The parties also plan to explore further PPA opportunities in the UK, Poland, and France. This agreement enhances the partnership between TotalEnergies and Air Products, supporting Air Products’ decarbonisation roadmap and aligning with TotalEnergies’ integrated electricity strategy across the value chain.
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