Hoegh LNG looks into seaborne hydrogen transport
LNG vessel operator Hoegh LNG has bought a minority share in Norwegian green hydrogen specialist Gen2 Energy, with the two companies agreeing to jointly develop a seaborne logistics chain for hydrogen.
"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," the companies said. "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."
Hoegh LNG said it would bring to the partnership its experience in shipping and importing natural gas, as well as establishing energy infrastructure and maintaining complex logistics chains. The company owns a fleet of floating storage and regasification units (FSRUs) and some LNG carriers.
Gen2 will provide its knowledge and experience of producing and handling green hydrogen. The pair will also look into using carbon-free propulsion systems for vessels and potentially injecting hydrogen into gas grids.
"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," Gen2 CEO Jonas Meyer said.
Gen2 recently signed a memorandum of understanding with the port of Cromarty Firth in Scotland on importing green hydrogen from Norway into the UK energy market.
"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 Hoegh LNG is uniquely positioned to serve," Hoegh LNG CEO Sveinung Stohle added.