Everfuel and Hydro to build hydrogen supply chain
Everfuel and Hydro will cooperate in expediting green hydrogen production growth and establish a platform for risk-sharing and cost reductions.
Everfuel A/S and Hydro’s renewable hydrogen company agreed to develop, operate, and optimise hydrogen electrolysers for green hydrogen production in Europe.
The partners plan to develop initially three projects adjacent to Hydro-owned aluminium plants. Special purpose companies (SPV) will be established to develop and operate each electrolyser plant, where the majority ownership shares would be determined based on the expected offtake from the site.
Everfuel and Hydro have agreed to initially work on three sites in Norway and in mainland Europe, which would be finalised later this year. It is understood that Everfuel will own majority shares in two of the three sites.
Both companies will cooperate on sharing knowledge in the development and operation of the green energy business. Everfuel can benefit from the cooperation agreement as it plans to expand in Scandinavia, BeNeLux and Germany in the coming years. Everfuel is working on a ‘Hydrogen distribution centre’ solution for fast and safe fuelling of high capacity hydrogen trailers. The partnership with Hydro would allow Everfuel to install and operate hydrogen distribution centres at planned sites adjacent to Hydro-owned aluminium plants.
Jacob Krogsgaard, the CEO of Everfuel, said, “Access to electrolysers with an industrial baseload and flexibility to increase production to meet growing mobility demand will be a key factor for Everfuel as we deliver on our long-term ambitions.”
Arvid Moss, EVP for Energy in Hydro, “Hydrogen use will enable more sustainable operations in Hydro, and through the partnership with Everfuel we will also be able to supply the growing green mobility market in Europe.”
At its quarterly presentation on April 27, Hydro is currently maturing 3-5 projects in Norway and Europe. Some of these projects are part of the cooperation with Everfuel. Hydro assesses that replacing natural gas with carbon-free hydrogen for heating purposes in aluminium production will help cut 30% of Hydro greenhouse gas emissions by 2030.