TotalEnergies and Air Products have signed a 15-year agreement for the annual supply in Europe of 70,000 tons of green hydrogen starting in 2030. This first long-term deal follows TotalEnergies call for tenders for the supply of 500,000 tons per year of green hydrogen to decarbonize TotalEnergies European refineries.
Under the agreement, Air Products will deliver green hydrogen from its global supply network to TotalEnergies Northern European refineries doorstep. This hydrogen will avoid around 700,000 tons of CO2 each year. The contract awarded to Air Products is a first step towards achieving TotalEnergies objective of reducing net greenhouse gas emissions from its operated oil and gas operations by 40% by 2030 compared to 2015 levels.
Air Products, the worldwide leader in terms of hydrogen supply, has been a first mover, committing more than $15 billion to real, large-scale energy transition projects and launching several large low carbon hydrogen projects worldwide, making it a leading and reliable supplier.
“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 proud to partner with Air Products, a pioneer in low carbon hydrogen production, under the leadership of Seifi Ghasemi. Once again, we demonstrate our capacity to pioneer the energy transition and contribute to the emergence of a green hydrogen industry by offering long-term contracts with our six refineries and two biorefineries in Europe. 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,” said Patrick Pouyanné, Chairman and CEO of TotalEnergies.
“Today, one of the largest energy companies in the world has committed to using renewable hydrogen to decarbonize its refineries in Northern Europe, and we at Air Products are honored and proud to be the producer and supplier of the green hydrogen required,” said Air Products Chairman, President, and CEO Seifi Ghasemi.
Noting that Air Products started on the journey of producing clean hydrogen seven years ago.
“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. I also want to express my admiration for Mr. Patrick Pouyanné vision and courage in acting as a first mover towards creating a cleaner future for the world.” Seifi Ghasemi added,
At the same time, TotalEnergies and Air Products have signed a memorandum of understanding 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 further PPA opportunities in the UK, Poland, and France. This agreement, which strengthens the partnership between TotalEnergies and Air Products, will contribute to Air Products decarbonization roadmap and is in line with TotalEnergies’ integrated electricity strategy along the value chain.
TotalEnergies and the decarbonization of its European refineries
TotalEnergies is committed to reducing the carbon footprint of producing, converting, and supplying energy to its customers. One of the levers identified by the Company is to use green or low carbon hydrogen to decarbonize its European refineries, a move that should help reduce its CO2 emissions by around five million tons a year by 2030.
Aiming to fully decarbonize the hydrogen used in its European refineries, the Company launched a call for tenders for the supply of 500,000 tons per year of green hydrogen in September 2023.
About TotalEnergies
TotalEnergies is a global integrated energy company that produces and markets energies: oil and biofuels, natural gas and green gases, renewables, and electricity. Our more than 100,000 employees are committed to providing as many people as possible with energy that is more reliable, more affordable, and more sustainable. Active in about 120 countries, TotalEnergies places sustainability at the heart of its strategy, its projects, and its operations.
About Air Products
Air Products (NYSE) is a world-leading industrial gases company in operation for over 80 years focused on serving energy, environmental, and emerging markets. The Company has two growth pillars driven by sustainability. Air Products base business provides essential industrial gases, related equipment, and applications expertise to customers in dozens of industries, including refining, chemicals, metals, electronics, manufacturing, and food. The Company also develops, engineers, builds, owns, and operates some of the world’s largest clean hydrogen projects supporting the transition to low- and zero-carbon energy in the heavy-duty transportation and industrial sectors.
The Company had fiscal 2023 sales of $12.6 billion from operations in approximately 50 countries and has a current market capitalization of over $50 billion. Approximately 23,000 passionate, talented, and committed employees from diverse backgrounds are driven by Air Products’ higher purpose to create innovative solutions that benefit the environment, enhance sustainability, and reimagine what’s possible to address the challenges facing customers, communities, and the world.
Source TotalEnergies