German state-owned energy firm SEFE Energy and Höegh Evi will explore importing clean hydrogen into Germany under a new Memorandum of Understanding (MOU).
The deal will focus on ammonia sourcing, ship-based transportation and delivery to floating import terminals where ammonia will be cracked for delivery to SEFE customers through Germany’s 9,000km hydrogen core network (HCN).
The pair will also look at possible locations for floating ammonia-to-hydrogen terminals along the Baltic Sea and North Sea cost, as well as other European locations.
Under the MOU, SEFE will manage upstream hydrogen supply and downstream use.
Marine infrastructure firm, Höegh Evi, will work on the midstream infrastructure using floating terminal infrastructure.
Last July the company partnered with Deutsche ReGas to develop a floating hydrogen import terminal, hosting ammonia cracking technology, in Lubmin, Germany.
Read more:Floating hydrogen import terminal planned for Germany
The firm says its terminals will provide a supply of dispatchable and baseload hydrogen for industrial customers.
Germany and wider Europe have been looking at imports as a key way to meet its expected hydrogen demands as it seeks lower-cost sources than domestic production.
Ammonia has been slated as a key carrier for imports, due to existing infrastructure. However, the pathway has faced criticism from some who claim the conversion processes are inefficient.
“Establishing global supply chains for hydrogen is a major step towards advancing the energy transition in Germany and Europe,” said Höegh Evi CEO, Erik Nyheim.
Hamead Ahrary, CSO of SEFE, added, “With Höegh Evi’s pioneering technology in the field of floating import terminals including the cracking of ammonia to hydrogen within the terminal and the deep customer understanding we have gained over the last decades, we have the best conditions to develop international clean hydrogen supply chains to make the energy transition a reality.”
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