The National Gas Company of Trinidad and Tobago Ltd (NGC) and NewGen Energy (NewGen), a hydrogen start-up, have signed a non-binding Letter of Intent (LOI) to collaborate on the construction of NewGen’s hydrogen production plant.
The LOI was signed during the Trinidad and Tobago Energy Conference.
According to a press release issued yesterday by the NGC, the parties will seek to enter into non-binding heads of agreement as well as definitive agreements once acceptable terms can be reached between the parties, subject to the commercial feasibility of this low-carbon project by all related stakeholders across the value chain.
“This letter of intent is the next stage in NGC and NewGen’s partnership to pursue the first industrial-scale low-carbon hydrogen project in Point Lisas and the Caribbean.” “Once economically viable, the NewGen project may represent a critical step toward Trinidad and Tobago’s medium to long-term decarbonization of the petrochemical sector, which the NGC is dedicated to and working toward,” said NGC President Mark Loquan.
“Through this LOI, NewGen is thrilled to take our relationship with NGC to the next level,” stated Philip Julien, chairman of NewGen.
“We are committed to establishing a world-scale, world-class, low-carbon hydrogen production facility in Point Lisas, and we are confident that this letter of intent with NGC will lead to greater collaboration with other key stakeholders who will contribute to this shared vision of a decarbonizing Trinidad and Tobago,” Julien said.
“Having recently acquired the majority ownership of NewGen, we are heartened by the signing of this LOI, as it symbolizes a key step towards optimizing conditions for further increasing our investment both in NewGen and, by extension, in the energy sector of Trinidad and Tobago,” said Damien Havard, chairman, and CEO of HDF Energy.
“We also stand ready to help this extended NGC/NewGen partnership as much as feasible, including through our worldwide experience in new hydrogen technology and “green” project finance, given our international and regional background in low carbon hydrogen project development.”
On hydrogen, PM
On Tuesday, Prime Minister Dr Keith Rowley addressed the opening of the Energy Conference, saying that T&T has taken a number of initiatives to achieve its climate change promise. “Electrification of the transportation system, an adaptation of renewable energy projects, carbon capture, utilization, and storage, carbon offsets, and we are actively researching the development of a hydrogen economy” are among the measures under question.
According to Rowley, hydrogen is being dubbed “the new oil” since it is claimed to have more energy per tonne than any fossil fuel.
“It is clean, nearly infinite, universally available energy from the sun, wind, and water, climatic conditions which Trinidad and Tobago as an archipelagic state possess in abundance,” the prime minister said, adding, “A global survey undertaken by industry consultants has indicated that two-thirds of oil and gas companies, including companies operating in Trinidad and Tobago, are currently investing in green hydrogen.”
He stated that hydrogen is a significant ingredient in petrochemical manufacturing in Trinidad and Tobago, and that it is currently generated from natural gas. With the exception of coal, which is a major emitter of greenhouse gases, he stated that hydrogen generated from natural gas had a competitive edge over other sources.
“Our hydrogen strategy envisions the transition to hydrogen from renewable sources not just as a decarbonization tool, but also as a feedstock for industry and a type of alternative energy, once the economics are worked out,” Rowley explained.
