SEFE and Höegh Evi team up to develop clean hydrogen supply chains for Europe
Germany’s energy transition takes a significant step forward as SEFE Securing Energy for Europe and Höegh Evi announce a strategic partnership to establish international clean hydrogen supply chains.
Through this collaboration, the two companies aim to develop robust infrastructure for the import, transport, and distribution of clean hydrogen, meeting Europe’s growing demand for sustainable energy solutions.
How Will SEFE and Höegh Evi Support Germany’s Energy Transition?
The partnership focuses on building a comprehensive supply chain, from sourcing clean hydrogen in the form of ammonia to delivering it to customers via advanced floating import terminals. SEFE will oversee upstream operations, including global sourcing and aggregation of hydrogen demand in Europe, while Höegh Evi will handle midstream operations, leveraging its innovative floating terminal technology.
Driving Decarbonisation Through Hydrogen
The agreement is central to Germany’s efforts to reduce reliance on fossil fuels and accelerate decarbonisation. SEFE, an international energy company owned by the German Federal Government, has long been at the forefront of energy trading and infrastructure development. With an annual sales volume of 200 terawatt-hours (TWh) of gas and power, SEFE serves over 50,000 customers, including small businesses, municipalities, and multinational corporations.
Through its subsidiary GASCADE, SEFE is also investing heavily in the German hydrogen core grid, a critical component of Europe’s hydrogen infrastructure.
Hamead Ahrary, Chief Sales Officer of SEFE, commented: “Our mission is to deliver cost-competitive clean hydrogen to support industrial decarbonisation in Europe. By partnering with Höegh Evi, we can explore innovative supply chain solutions and expand the hydrogen ecosystem to make the energy transition a reality.”
What Role Does Höegh Evi Play in the Hydrogen Ecosystem?
Höegh Evi brings unparalleled expertise in floating energy infrastructure, with a history spanning over five decades. Its fleet of Floating Storage and Regasification Units (FSRUs) plays a pivotal role in importing natural gas. Now, the company is advancing its capabilities to support hydrogen imports with its ammonia-to-hydrogen cracker technology.
This groundbreaking floating terminal solution enables ammonia to be transported by sea and converted into hydrogen on an industrial scale.
Erik Nyheim, CEO of Höegh Evi, highlighted the significance of this innovation: “Our floating terminals provide a unique solution to bridge the gap between global hydrogen markets and European demand. By collaborating with SEFE, we are building the infrastructure necessary to create new pathways to decarbonisation.”
Höegh Evi’s technology ensures a dispatchable, baseload-ready hydrogen supply for industrial customers, addressing critical energy needs while contributing to sustainability goals.
Why Are Floating Terminals Key to Hydrogen Imports?
Floating terminals are an adaptable and cost-efficient solution for hydrogen imports, particularly for coastal regions with limited infrastructure. The partnership between SEFE and Höegh Evi includes identifying potential sites for these terminals along Germany’s Baltic and North Sea coasts and exploring other locations across Europe.
These terminals are designed to crack ammonia into hydrogen, ensuring seamless integration into Germany’s hydrogen core grid. This approach reduces infrastructure development timelines and costs while enabling rapid deployment of clean energy solutions.
How Does This Partnership Align with Europe’s Energy Transition Goals?
The collaboration between SEFE and Höegh Evi represents a significant advancement in Europe’s journey toward achieving climate neutrality. Hydrogen is widely regarded as a cornerstone of the energy transition due to its versatility and ability to decarbonise industrial processes, transportation, and power generation.
By developing international supply chains for clean hydrogen, SEFE and Höegh Evi are addressing critical challenges, including securing a reliable supply, reducing costs, and establishing the necessary infrastructure for large-scale adoption.
Their efforts also align with the European Union‘s hydrogen strategy, which aims to install 40 gigawatts of electrolyser capacity and produce 10 million tonnes of renewable hydrogen annually by 2030.
Expert Insights on the Hydrogen Economy
Energy experts have praised the partnership as a model for public-private collaboration in clean energy innovation. They emphasise that developing scalable and economically viable hydrogen supply chains is crucial for meeting Europe’s climate targets.
“This partnership demonstrates the potential of leveraging private-sector innovation and government-backed initiatives to accelerate the hydrogen economy,” said an industry analyst.
What Does the Future Hold for Clean Hydrogen Supply Chains?
As SEFE and Höegh Evi continue to explore technical and commercial feasibility, their partnership is expected to set new benchmarks for clean hydrogen supply chains. By combining SEFE’s expertise in energy trading and infrastructure with Höegh Evi’s floating technology, the initiative is poised to create a reliable, scalable, and cost-effective hydrogen ecosystem.
This collaboration not only strengthens Germany’s energy security but also positions Europe as a global leader in the transition to clean energy.
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