ByTsvetana Paraskova– Feb 18, 2025, 6:30 AM CST
TotalEnergies and Air Liquide plan to invest a combined more than $1.046 billion (1 billion euros) in two electrolyzer projects to produce green hydrogen in the Netherlands, as part of the French supermajor’s efforts to slash emissions from its refineries in northwest Europe.
TotalEnergies on Tuesday said it had signed agreements with French industrial gases firm Air Liquide to develop two projects in the Netherlands, for the production and delivery of about 45,000 tons a year of green hydrogen produced using renewable power.
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The electricity for the electrolyzers will mostly come from the OranjeWind offshore wind farm in the Netherlands developed by TotalEnergies and Germany’s RWE.
The two green hydrogen projects are expected to cut CO2 emissions from TotalEnergies’ refineries in Belgium and the Netherlands by up to 450,000 tons a year and contribute to the European renewable energy targets in transport.
Per the agreement, which will entail more than $1 billion in combined investments, as Air Liquide announced, the companies will set up a 50/50 joint venture. The new company will build and operate a 250-MW electrolyzer near the Zeeland refinery. This electrolyzer will be commissioned in 2029 and will cut the site’s CO2 emissions by up to 300,000 tons a year.
The project has made requests for support under European and national subsidy programs. Project funding will also be sought by the partners, TotalEnergies said.
In the other joint project, TotalEnergies has signed a tolling agreement for 130 MW to be dedicated to the production of 15,000 tons per year of green hydrogen at Air Liquide’s 200 MW ELYgator electrolyzer project in Maasvlakte, for the TotalEnergies platform in Antwerp. The project is expected to be operational by the end of 2027 and will reduce CO2 emissions at the Antwerp site by up to 150,000 tons per year.
TotalEnergies has previously signed other deals with Air Liquide as part of its target to decarbonize the hydrogen consumed by its refineries in Europe by 2030.
TotalEnergies’ plans for more green hydrogen production and one of the projects seeking subsidy support come as analysts warn that green hydrogen will not become cost-completive for a long time.
Green hydrogen will struggle to compete at price level with gray hydrogen made from natural gas at least until 2050—much longer than previously anticipated, research firm BloombergNEF said in December 2024.
By Tsvetana Paraskova for Oilprice.com
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