Höegh LNG acquires minority stake in Gen2 Energy and signs cooperation agreement on seaborne logistics for green hydrogen
In a recently signed agreement, Gen2 Energy and Höegh LNG agrees to cooperate on the development of a seaborne logistics chain for green hydrogen as envisioned by Gen2 Energy.
The partnership targets to take a first mover position in seaborne transport of green hydrogen, a market that does not exist on a large scale today. Green hydrogen can be produced at cost competitive levels, but several of the optimal production sites are at remote locations, making transport by land expensive. By transporting hydrogen at sea, the two parties aim to reduce both transport cost and CO2 emissions significantly.
Höegh LNG’s contributions mainly relate to the extensive experience of shipping and import of natural gas, establishing energy infrastructure and maintaining complex logistics chains. Gen2 Energy will contribute with its knowledge and experience in production and safe handling of green hydrogen. Together, the parties will also explore the use of carbon free propulsion systems for vessels and the potential for injection of hydrogen into the natural gas transmission grids.
Jonas Meyer, Chief Executive Officer in Gen2 Energy says: “I am very pleased to sign this cooperation agreement with Höegh LNG. The company has close to 100 years’ experience from the maritime industry, including handling and transport of natural gas, which is valuable when developing a new market for seaborne transport of hydrogen.”
He continues: “The agreement brings us one step closer to the goal of providing European energy markets with fossil-free hydrogen on a large scale, and we are extremely pleased to engage in this important collaboration with such an experienced actor. It also fits very well with Gen2 Energy’s announcement with Port of Cromarty Firth last week, which to my knowledge was the first ever export agreement for green hydrogen from Norway”.
Sveinung J S Støhle, President & CEO of Hoegh LNG, commented: “We are delighted to be both shareholder and a partner with Gen2Energy on seaborne hydrogen transportation. It is a critical element of the hydrogen value chain and one that Höegh LNG is uniquely positioned to serve. Gen2Energy has the potential to be one of the first large scale suppliers of green hydrogen to market with Höegh LNG taking a leading infrastructure role.”
Source: Gen2 Energy