New Industry Partnership Aims to Develop Green Hydrogen and Ammonia Projects

by | Oct 13, 2022

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Avangrid, a member of the Iberdrola Group, and Sempra Infrastructure, a subsidiary of Sempra, announced they have entered into a heads of agreement (HOA) for the potential joint development of US green hydrogen and ammonia projects powered by renewable sources.

The HOA provides a framework for the companies to identify, appraise, and potentially develop large-scale green hydrogen projects to help meet the energy and decarbonization needs of both US and international customers.

Sempra, in a press release, said clean hydrogen and ammonia can be effective decarbonization solutions for various sectors of the US and global markets. Significant infrastructure will be needed for hydrogen’s potential to become a reality.

The referenced HOA is non-binding, and the development of these joint projects is subject to a number of risks and uncertainties, including reaching definitive agreements, securing all necessary permits, and reaching a final investment decision with respect to each project.

Green hydrogen has made headlines recently, most notably in August when Amazon secured a significant amount of green hydrogen from Plug Power. In return, Amazon will assist the clean energy company with a revenue goal that will help it further achieve its strategy to build widespread hydrogen infrastructure.

The deal calls for Amazon to receive 10,950 tons of liquid green hydrogen per year beginning in 2025. Amazon will also acquire up to 16 million shares of Plug’s common stock, which Plug expects will help it toward a $3 billion revenue goal by 2025.

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