Denmark-based green hydrogen company Everfuel has signed a letter of intent (LoI) with an undisclosed large industrial offtaker in Germany for the supply of up to 10,000 tons of green hydrogen annually from 2028.
According to Everfuel, the customer’s initial demand is expected to match the hydrogen output from an operationally optimized 100 MW electrolyzer, aligning with the company’s strategy of developing standardized, scalable electrolyzer modules tailored to demand.
The customer expects to increase the consumption of green hydrogen, classified as renewable fuels of non-biological origin (RFNBO), over time in accordance with its plans for decarbonizing industrial processes.
Everfuel said it may supply the RFNBO hydrogen from project Sif or other future electrolyzer projects under development.
The LoI is the first step towards a final commercial agreement between the parties, which is conditional upon several factors, including the establishment of hydrogen pipeline infrastructure between Denmark and Germany connecting Everfuel’s production facility and the customer.
“This is a validation of Everfuel’s focused strategy for delivering green hydrogen at scale to industrial customers and I would like to acknowledge our partner’s ambition to pioneer the hydrogen transition in Germany. We share a strong commitment to enabling material carbon emission reductions and creating a platform for mutual long-term value creation,” said Jacob Krogsgaard , Founder and CEO of Everfuel.
“On 5 April 2024 the Danish government announced that it is willing to take majority of the investment risk of the Danish hydrogen backbone if market participants provide sufficient commitment. Today’s agreement is a cross-border confirmation of the willingness from Everfuel and partner to show such a commitment.
“The 5 May 2024 Everfuel responded to Energinet’s (Danish TSO) market exploration deadline for backbone capacity reservation. Everfuels indication of capacity reservation included a significant commitment, which also includes the German industrial offtaker, and is showing Everfuel dedication to make large scale green hydrogen production and distribution happen.”
Meanwhile, the Danish company anticipates the start-up of HySynergy 1 , its 20 MW green hydrogen production plant in Fredericia, in the second half of 2024.