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Green Hydrogen H2 News

Gen2 Energy to Supply Green Hydrogen to German State-Owned SEFE

Anela DoksoBy Anela Dokso10/10/20232 Mins Read
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Norwegian clean energy firm Gen2 Energy AS has signed a term sheet to supply green hydrogen from its planned 100-MW production plant in Norway to German state-owned SEFE Securing Energy for Europe (SEFE).

The deal between the two companies marks a milestone in the energy cooperation between Germany and Norway aimed at ensuring hydrogen supply from the Scandinavian country to Europe’s largest economy. The signing of the transaction term sheet comes after in December the two companies sealed a memorandum of understanding (MoU) to establish a supply chain for green hydrogen between the two countries.

In the meantime, Gen2 Energy has received a general building permit for the hydrogen plant in the town of Mosjøen which it claims to be the largest to obtain such a permit in Norway so far. Before launching the construction works, the company has to receive project start-up permissions from the Vefsn municipality where the plant will be situated. Late last year, the Norwegian firm hired UK engineering consultancy John Wood Group, better known as Wood, as a front-end engineering design (FEED) contractor for the project.

Once operational, the plant is expected to produce 42 tonnes of green hydrogen per day. Founded in 2019, Gen2 Energy aims to establish a portfolio of production sites with a capacity of up to 1 GW within the next few years. The company counts among its backers UK-based HydrogenOne Capital Growth.

SEFE is the former German business of Russia’s Gazprom which the German government took over in 2022. The company is represented in the deal with Gen2 Energy through its subsidiary WINGAS. Gen2 Energy’s planned hydrogen plant in Mosjøen will use renewable energy from hydropower to produce green hydrogen. The plant will use a process called electrolysis to split water molecules into hydrogen and oxygen. The hydrogen will then be stored and transported to Germany.

The deal between Gen2 Energy and SEFE has the potential to make a significant contribution to the development of the green hydrogen industry in Norway and Germany. It will also help to reduce Europe’s reliance on fossil fuels.

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