TotalEnergies Signs Green Hydrogen Supply Agreement with Air Products

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 to supply 500,000 tons per year of green hydrogen to decarbonize TotalEnergies European refineries.

TotalEnergies Sign Agreement with Air Products

With this agreement, Air Products will deliver green hydrogen from its global supply network to TotalEnergie's Northern European refineries, a move that will prevent around 700,000 tons of CO2 emissions each year. This contract is a crucial step towards TotalEnergies' ambitious goal of reducing net greenhouse gas emissions from its oil and gas projects worldwide by 40% by 2030 compared to 2015.

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Air Products, a worldwide leader in hydrogen supply, has been a first mover, committing more than USD 15 billion in renewable energy projects worldwide and launching several green hydrogen projects worldwide, making it a leading and reliable supplier.

Apart from this, TotalEnergies and Air Products have signed a memorandum of understanding for the supply of renewable power, which entails signing a first Power Purchase Agreement (PPA) for 150 MW produced at a solar project in Texas. The parties also plan to explore PPA opportunities in the UK, Poland, and France. 

Read: European Hydrogen Bank Auction Awards $775 Million for Green Hydrogen Projects in Europe

Background of the Agreement

This strategic move is part of TotalEnergy's broader initiative to decarbonize its European refineries and align with the growing momentum toward sustainable energy practices.

The Importance of Green Hydrogen

Green hydrogen, produced through water electrolysis using renewable energy sources, is considered a clean fuel as its combustion only releases water vapor. It is seen as a critical component in the transition to a low-carbon economy, particularly in sectors that are challenging to electrify, such as heavy industry and transportation. By replacing fossil fuel-derived hydrogen with green hydrogen, TotalEnergies aims to reduce its carbon footprint significantly.

Decarbonization of European Refineries

TotalEnergies European refineries are integral to its operations, and the shift to green hydrogen is expected to avoid around 700,000 tons of CO2 emissions each year. This is in line with the European Union's ambitious climate targets, which include a 55% reduction in greenhouse gas emissions by 2030. The agreement with Air Products will ensure a steady supply of green hydrogen to TotalEnergies Northern European refineries, facilitating a smoother transition from carbon-intensive processes.

Strategic Partnership and Vision

The partnership between TotalEnergies and Air Products extends beyond the supply agreement. TotalEnergies will also become a supplier of green power to Air Products, contributing to Air Products' decarbonization roadmap. This collaboration reflects a shared vision for a sustainable future and demonstrates the companies' commitment to leading the energy transition.

Read: TotalEnergies has Signed two LNG Contracts in Asia

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