French energy major TotalEnergies and U.S. industrial gases supplier Air Products have signed a 15-year agreement for the annual supply of 70,000 tons of green hydrogen starting in 2030.
TotalEnergies said that Air Products will deliver green hydrogen to its Northern European refineries, adding that the contract is the first step towards achieving the company’s objective of reducing net greenhouse gas (GHG) emissions from its oil and gas operations (Scope 1+2) by 40% by 2030 compared to 2015 levels.
The deal follows TotalEnergies’ call for tenders for the supply of 500,000 tons per year of green hydrogen to decarbonize the company’s European refineries, which include Antwerp in Belgium, Leuna in Germany, Zeeland in the Netherlands, Normandy, Donges and Feyzin in France and two biorefineries in La Mède and Grandpuits in France, all consumers of hydrogen.
To note, the two companies have also signed a memorandum of understanding (MoU) for the supply of renewable power, which entails the signing of a first power purchase agreement (PPA) for 150 MW produced at a solar project in Texas. The parties also plan to explore together further PPA opportunities in the UK, Poland and France.
Patrick Pouyanné, Chairman and CEO of TotalEnergies, stated: “This deal with Air Products, the first signed following the call for tenders launched last year, is a stepping stone towards our goal of decarbonizing the hydrogen used in TotalEnergies’ refineries in Northern Europe by the end of the decade. .. 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.”
Seifi Ghasemi, Air Products’ Chairman, President and CEO, noted: “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.”