TotalEnergies has signed a 15-year agreement with Air Products to supply 70,000 tons of green hydrogen annually starting in 2030. This agreement marks the first long-term deal following TotalEnergies’ call for tenders for 500,000 tons per year of green hydrogen to support the decarbonization of its European refineries.
Strategic Importance of the Agreement
The agreement, signed on June 7, 2024, is a pivotal step towards TotalEnergies’ objective of reducing net greenhouse gas emissions from its oil and gas operations (Scope 1+2) by 40% by 2030 compared to 2015. The green hydrogen supplied by Air Products will be delivered directly to TotalEnergies’ Northern European refineries, avoiding approximately 700,000 tons of CO2 emissions annually.
Patrick Pouyanné, Chairman and CEO of TotalEnergies, highlighted the significance of this partnership. “This deal with Air Products is a stepping stone towards our goal of decarbonizing the hydrogen used in TotalEnergies’ refineries in Northern Europe by the end of the decade. We are proud to partner with Air Products, a pioneer in low-carbon hydrogen production. Once again, we demonstrate our capacity to pioneer the energy transition and contribute to the emergence of a green hydrogen industry by offering long-term contracts with our six refineries and two biorefineries in Europe.”
Air Products’ Role and Expertise
Air Products, a global leader in hydrogen supply, has committed over $15 billion to large-scale energy transition projects, making it a reliable partner for TotalEnergies. Seifi Ghasemi, Chairman, President, and CEO of Air Products, expressed pride in this collaboration. “Today, one of the largest energy companies in the world has committed to use renewable hydrogen to decarbonize its refineries in Northern Europe, and we at Air Products are honored and proud to be the producer and supplier of the green hydrogen required,” Ghasemi said.
Ghasemi further emphasized Air Products’ strategic foresight in the clean hydrogen sector, noting, “We always believed that if we made clean hydrogen available at commercial scale, the demand would be there. This contract validates our long-term strategy. Clearly, the demand is here, and it will grow significantly as we move forward, playing an essential role in decarbonizing heavy industry and other sectors.”
Broader Implications and Future Collaborations
In addition to the green hydrogen supply agreement, TotalEnergies and Air Products have signed a memorandum of understanding for renewable power supply. This includes a first Power Purchase Agreement (PPA) for 150 MW from a solar project in Texas, with plans to explore further PPA opportunities in the UK, Poland, and France. This agreement strengthens the partnership between the two companies and aligns with TotalEnergies’ integrated electricity strategy along the value chain.
TotalEnergies’ commitment to reducing its operations’ carbon footprint is evident through its ambitious targets. By fully decarbonizing the hydrogen used in its European refineries, the company aims to reduce CO2 emissions by around five million tons annually by 2030. This initiative is part of a broader strategy to achieve carbon neutrality and support the global energy transition.
