TotalEnergies and Air Products has announced a groundbreaking 15-year agreement for the annual supply of 70,000 tonnes of green hydrogen to TotalEnergies’ refineries in Northern Europe starting in 2030.
The deal marks a significant step in TotalEnergies’ goal to reduce net greenhouse gas emissions from its oil and gas operations by 40 per cent by 2030 compared to 2015 levels.
It follows the energy major’s call last year for tenders to supply 500,000 tonnes per year of green hydrogen to decarbonise its European refineries.
Under the agreement valued at over $1 billion, Air Products will deliver green hydrogen produced from its global supply network directly to TotalEnergies’ refinery gates.
This is expected to avoid around 700,000 tonnes of CO2 emissions annually.
“This deal with Air Products is a stepping stone towards our goal of decarbonising the hydrogen used in our refineries in Northern Europe by the end of the decade,” said Patrick Pouyanné, TotalEnergies’ Chairman and CEO.
“We are proud to partner with Air Products, a pioneer in low-carbon hydrogen production.”
Air Products Chairman, President and CEO Seifi Ghasemi hailed the contract as validating the company’s long-term clean hydrogen strategy.
“One of the largest energy companies has committed to use renewable hydrogen to decarbonise refineries in Northern Europe, and we are honoured to be the supplier.”
The two companies also signed a renewable power agreement for TotalEnergies to purchase 150 MW from an Air Products solar project in Texas, with plans to explore further power purchase deals in Europe.
The partnerships strengthen TotalEnergies’ integrated electricity strategy and will contribute to Air Products’s decarbonisation roadmap as it has committed over $15 billion to energy transition projects globally.
TotalEnergies aims to fully decarbonise the hydrogen used in its six refineries and two biorefineries across Europe as part of its commitment to reduce the carbon footprint across its operations and energy products.
Replacing fossil-based hydrogen with green hydrogen at its European refineries could reduce the company’s CO2 emissions by around five million tonnes annually by 2030.
