TotalEnergies Joins Forces with Air Liquide to Decarbonize its Refineries in Northern Europe with Green Hydrogen
18 February 2025
- 45,000 tons per year of green H2 produced by the OranjeWind offshore wind farm developed by TotalEnergies (50%).
- 450,000 tons per year reduction of CO2 emissions from TotalEnergies’ Anvers and Zeeland refineries.
- An electrolyzer jointly developed in the Netherlands with Air Liquide to supply the Zeeland refinery.
- A tolling agreement on a second electrolyzer built and operated in partnership with Air Liquide to supply Antwerp platform.
Paris, February 18, 2025 – In line with its 2030 ambition to decarbonize the hydrogen used in its European refineries, TotalEnergies has signed agreements with Air Liquide to develop two projects in the Netherlands, for the production and delivery of some 45,000 tons a year of green hydrogen produced using renewable power, generated mostly by the OranjeWind offshore wind farm, developed by TotalEnergies (50%) and RWE (50%). These projects will cut CO2 emissions from TotalEnergies’ refineries in Belgium and the Netherlands by up to 450,000 tons a year and contribute to the European renewable energy targets in transport.
Green hydrogen production by TotalEnergies and Air Liquide
The two companies have signed an agreement to set up a joint venture, equally held by TotalEnergies (50%) and Air Liquide (50%), which will build and operate a 250 MW electrolyzer near the Zeeland refinery. This project will enable the production of up to 30,000 tons of green hydrogen a year, most of which will be delivered to Zeeland’s platform. The electrolyzer will be commissioned in 2029 and will cut the site’s CO2 emissions by up to 300,000 tons a year. This project represents a global investment of around €600 million for both partners and has made requests for support under European and national subsidy programs. Project funding will also be sought by the partners.
Supplying TotalEnergies’ Antwerp platform with green hydrogen
In addition, as part of Air Liquide’s 200 MW ELYgator electrolyzer project located in Maasvlakte (Netherlands), TotalEnergies has signed a tolling agreement for 130 MW to be dedicated to the production of 15,000 tons per year of green hydrogen for the TotalEnergies platform in Antwerp. Under this agreement, TotalEnergies will supply the renewable electrons produced by the OranjeWind project to Air Liquide to be transformed into green hydrogen. The project is expected to be operational by the end of 2027 and will reduce CO2 emissions at the Antwerp site by up to 150,000 tons per year.
“Following the first partnership agreement with Air Liquide to supply the Normandy refinery with green hydrogen, and the agreements to supply the Grandpuits and La Mède biorefineries with renewable hydrogen, the partnership with Air Liquide takes on a new dimension and marks a new step in TotalEnergies’ ambition to decarbonize the hydrogen consumed by its refineries in Europe by 2030”, said Vincent Stoquart, President, Refining & Chemicals at TotalEnergies. “By supplying these two electrolyzers with renewable electricity from our offshore wind project in the Netherlands, TotalEnergies is leveraging its positioning as an integrated electricity company.”
“Flagship projects such as the ones we are announcing today, will play a key role in reducing emissions, particularly in hard-to-abate sectors such as industry and heavy mobility. We are proud to lead the way on European renewable and low-carbon hydrogen production, and to accompany TotalEnergies in their journey to decarbonizing their industrial assets. These two projects will complete the five Air Liquide low carbon units already in operation or construction in Europe. This illustrates our capacity to offer concrete solutions to our customers, to reach our carbon neutrality ambition by 2050, and to support Europe’s leadership ambition towards decarbonized growth. It also demonstrates the ability of Air Liquide to develop solid business models in the energy field of low carbon hydrogen.” said Emilie Mouren-Renouard, member of the Air Liquide Executive Committee, in charge of Europe operations.
TotalEnergies and the decarbonization of its European refineries
TotalEnergies is committed to reducing the carbon footprint of producing, converting and supplying energy to its customers. One of the pathways identified by the Company is using low-carbon hydrogen to decarbonize its European refineries, a move that should help reduce its annual CO2 emissions by around three million tons by 2030. In order to fully decarbonize the hydrogen used in its European refineries, TotalEnergies has already contracted over 170,000 tons of green hydrogen annually at: La Mède, Grandpuits and Normandy in France, Leuna in Germany and its refineries in Belgium and the Netherlands.
Gasgrid with Project Partners Awarded EUR 51.4 Million EU Support for Hydrogen Transport Infrastructure Projects in the Baltic Sea Area
1 February 2025
All hydrogen transfer projects promoted by Gasgrid, together with its international partners, received support from the European Union Connecting Europe (CEF). Financial support was applied for three projects: Nordic-Baltic Hydrogen Corridor (NBHC), Nordic Hydrogen Route (NHR) and Baltic Sea Hydrogen Collector (BHC), all of which were granted financial support. Gasgrid applied for support with its partners in autumn 2024. On 29 January 2025, the Committee on the Connecting Europe Facility (CEF) decided on a proposal from the European Commission. The Corridor project of Nordic-Baltic Hydrogen develops hydrogen infrastructure combining the markets of Estonia, Latvia, Lithuania, Poland and Germany. Nordic Hydrogen’s Route project develops hydrogen infrastructure between Finland and Sweden on the Bothnian Bay coast. The Baltic Sea Hydrogen Collector project develops undersea hydrogen infrastructure to connect the markets in Finland and Sweden and central Europe.
These three projects aim to create excellent investment conditions for further processing plants for clean electricity, hydrogen and hydrogen nationally and wider Baltic Sea regions. “The news is very positive from the perspective of Finland and the entire European hydrogen economy. The decision shows that Finland and the Baltic Sea region are a strategically significant and highly competitive region to develop a hydrogen economy. This decision will help develop the hydrogen market and create preconditions for Gasgrid’s long-term work to promote the Finnish hydrogen economy. We see strong signals of hydrogen projects coming to the provinces. In line with our strategy, we will continue to develop a national hydrogen network and at the same time to build international infrastructure projects and an international market to enable investments in the hydrogen economy in Finland,” says Sara Kärki, Director of Hydronization Development at Gasgrid.
EUR 51.4 million for further research into projects
The European Commission allocated a joint venture of project (PCI) status to projects in April 2024 and now totalling €51.4 million. The Nordic-Baltic Hydrogen Corridor project (NBHC) received a total of EUR 6.8 million in support. The Nordic Hydrogen Route project (NHR) received EUR 29.4 million. The Baltic Sea Hydrogen Collector project (BHC) received EUR 15.3 million.
The projects were assessed using criteria that highlighted priority and urgency, maturity, quality, impact and industry acceleration. The European Commission considered that all three projects contribute to reducing CO2 emissions and achieving EU climate and energy targets and facilitating the creation of an integrated, competitive and transparent cross-border hydrogen market.
“A decision is a great thing for Finland. Competition for infrastructure funding is fierce in the EU and therefore this decision is a great demonstration of the quality of our project work and its potential to promote the EU’s energy self-sufficiency, energy security and opportunities to support a clean transition,” Kärki continues.CEF: Connecting Europe Facility, i.e. Connecting Europe, provides financial support for energy grid development, among other things. In this application round, a total of EUR 1.2 billion of EU funding was allocated to various energy infrastructure projects.
Gasgrid is a gas transmission system operator in Finland and a builder of a national hydrogen network. We provide our customers with safe, reliable and cost-effective gas transfer. We are actively and customer-oriented developing our transmission platform, services and gas markets to promote the carbon-neutral energy and raw materials system of the future. Gasgrid Group consists of the central government-owned parent company Gasgrid Finland Oy and subsidiaries Gasgrid vetyverkot Oy and Floating LNG Terminal Finland Oy.
Spain’s Enagas plans multibillion-euro investment in hydrogen infrastructure
18 February 2025
MADRID, Feb 18 (Reuters) – Spanish gas grid operator Enagas (ENAG.MC), opens new tab plans to invest more than 4 billion euros ($4.18 billion) by the end of the decade, with more than three quarters of that earmarked for hydrogen infrastructure.
With Spanish gas demand falling, Enagas has sold assets, reduced dividends and cut debt to fund plans to diversify into managing a network of hydrogen infrastructure. It is also targeting ammonia and CO2 capture.
Hydrogen will be “the driving force to advance towards the Enagas of the future”, Chief Executive Arturo Gonzalo said on Tuesday. Of the planned 4.04 billion euros in net investment between 2025 and 2030, hydrogen infrastructure will account for 3.13 billion euros, Gonzalo told analysts as he presented the company’s strategic update. Enagas, in which the state owns a 5% stake, is part of a consortium working on the planned trans-European H2Med corridor aimed at connecting Iberia’s hydrogen networks with northwest Europe. It also plans to build a hydrogen network in Spain.
The company expects to invest 520 million euros in gas networks and a further 225 million euros in a new company, Scale Green Energy, focused on infrastructure and services in businesses such as CO2 capture.The company expects core profit of about 875 million euros in 2030. The hydrogen business is expected to contribute about 290 million euros, with its other gas business contributing 400 million euros.
This year’s core profit is forecast to fall to 670 million euros from 760.7 million euros last year, the company said, with net debt remaining around 2.4 billion euros.
Powering the Future: €184.5M Clean Hydrogen Partnership Call to Boost Hydrogen Value Chain Across Europe
15 January 2025
The Clean Hydrogen Partnership is excited to announce the launch of its 2025 Call for Proposals under the Horizon Europe programme.
As the Clean Hydrogen partnership enters its technology upscaling phase, it will fund projects to achieve cost-effective renewable hydrogen production, develop cost-effective hydrogen storage solutions or deliver reliable, scalable fuel cell systems for heavy-duty vehicles and maritime applications. The call also allocates €80 million from the RePowerEU Plan for the continued development of Hydrogen Valleys across Europe.
With a total budget of €184.5 million, the call aims to accelerate innovation across critical areas of the hydrogen value chain and reflects continued commitment towards advancing clean hydrogen technologies for climate neutrality and competitiveness in Europe.
“The 2025 call reflects our continued efforts to invest in research and innovation for a competitive clean hydrogen value chain in Europe. We are looking at expanding hydrogen’s applications in key sectors, enhancing fuel cell technologies and hydrogen electrolysis efficiency, while tackling major market challenges, such as reducing hydrogen’s production costs, improving material durability and safety, and strengthening Europe’s hydrogen infrastructure. Finally, hydrogen valleys will again be an important part of the call, in a drive to support both large and small-scale Hydrogen ecosystems integrating production, distribution, and use”, said Valerie Bouillon-Delporte, Executive Director of the Clean Hydrogen Partnership.
The call is addressing key topics from the Clean Hydrogen Partnership Strategic Research Agenda with funding allocated as follows:
€40M for Renewable Hydrogen Production
€16M for Hydrogen Storage and Distribution
€17M for Transport Applications
€5M for Heat and Power
€6.5M for Cross-Cutting Activities
€80M for Hydrogen Valleys
All applications must be submitted via the EU’s Funding and Tenders portal before the deadline of 23 April 2025. Clean Hydrogen will host an information day in Brussels on 22 January. For more information, visit the dedicated call pages on the Clean Hydrogen Partnership website.
MECALO project: Transforming sustainable EU critical raw materials production with renewable hydrogen
16 January 2025
The Horizon Europe-funded MECALO project is leading the charge in revolutionising the production of critical raw materials (CRMs) essential for European industry.
By leveraging renewable hydrogen and innovative carbon-looping technologies, MECALO aims to achieve CO2-neutral production of Silicon (Si) and Manganese (Mn), marking a significant leap toward sustainable industrial practices.
This initiative aligns with the European Union’s Critical Raw Materials Act, which prioritises a secure and sustainable supply of CRMs while advancing climate neutrality goals.
Tackling Europe’s reliance on critical raw materials
Silicon and manganese are indispensable components for Europe’s clean technology initiatives and achieving climate neutrality by 2050.
Despite their importance, Europe relies heavily on imports for these materials, with China supplying 76% of the global silicon demand.
Norway leads as Europe’s primary supplier, contributing 33% of silicon, while France and Norway collectively supply only 5% of ferromanganese.
This dependency highlights the urgent need for Europe to bolster its CRM production capabilities to reduce reliance on external sources and ensure resilience in critical industries.
MECALO’s ambitious vision for CO2-neutral production
MECALO’s primary goal is to establish a sustainable, CO2-free model for producing silicon and manganese. The project’s innovative approach includes:
- Renewable hydrogen integration: Utilising hydrogen sourced from renewable energy to replace fossil carbon in metallurgical processes, significantly reducing CO2 emissions.
- Carbon looping technology: Developing processes that minimise reliance on fossil fuels, achieving up to a 95% reduction in CO2 emissions during Si and Mn production.
Through these advancements, MECALO aims to replace 9 million tonnes of coal imports annually with 15 billion Nm³ of hydrogen by 2050, cutting 33 million tonnes of annual CO2 emissions.
Moreover, the project’s approach could serve as a blueprint for decarbonising other energy-intensive industries across Europe.
Addressing challenges in decarbonising critical industries
Many metallurgical processes, including those producing silicon and manganese, depend on carbothermic reduction, which generates CO2 as a by-product.
While hydrogen offers a promising alternative for decarbonisation, its lower reductant efficiency poses challenges for certain metals.
MECALO’s innovative approach overcomes these obstacles, paving the way for sustainable CRM production without the need to develop entirely new production technologies from scratch.
A pan-European collaboration for a sustainable future
Funded by the Horizon Europe Framework Programme for research and innovation (2021-2027), the MECALO project brings together 15 partners from eight EU member states and associated countries. This multidisciplinary consortium includes:
- Four research centres
- Four small and medium enterprises (SMEs)
- Five industrial partners
- Two additional entities
Coordinated by SINTEF, the collaboration covers the entire critical raw materials value chain, ensuring a comprehensive and cohesive approach to achieving the project’s ambitious goals.
By combining expertise from research institutions and industry leaders, MECALO is poised to deliver transformative results that will strengthen Europe’s position in the global CRM market.
The MECALO project officially kicked off with a meeting in Trondheim, Norway, on October 28-29, 2024.
During the event, project partners outlined their roles and laid the groundwork for the 42-month initiative. Participants also visited SINTEF’s state-of-the-art laboratories to explore the cutting-edge technologies essential for achieving MECALO’s objectives.
A path toward sustainable CRM production
The MECALO project embodies the EU’s commitment to sustainable innovation, aiming to secure a resilient future for critical industries.
By prioritising CO2-free production and leveraging renewable hydrogen, MECALO addresses urgent challenges in CRM production while aligning with Europe’s climate neutrality targets.
Through collaboration and cutting-edge research, this transformative initiative not only reduces environmental impact but also enhances Europe’s industrial autonomy.
As MECALO progresses, it sets the stage for a cleaner, more sustainable future for the production of critical raw materials, ensuring Europe remains competitive and environmentally responsible on the global stage.
SEFE and Höegh Evi to develop international clean hydrogen supply chains
20 January 2025
- Partnership to establish international supply chains to secure competitive clean hydrogen
- SEFE responsible for securing the supply of clean hydrogen and for the sale of hydrogen in Germany and Europe
- Höegh Evi to provide infrastructure for transport and import of clean hydrogen via floating terminals
Berlin, 20 January 2025- SEFE Securing Energy for Europe and marine infrastructure provider Höegh Evi have signed a Memorandum of Understanding (MoU) to jointly develop international supply chains for clean hydrogen to be delivered to Germany and other locations in Europe. Together, SEFE and Höegh Evi will analyse the technical and commercial feasibility of various corridors for the supply of clean hydrogen based on ammonia.
Partnering to enable customer decarbonisation in support of Germany’s energy transition goals
The objective of the agreement is to implement international supply chains for clean hydrogen. This includes sourcing of ammonia, transportation by ship, and delivery to floating import terminals where the ammonia is cracked into hydrogen for delivery to SEFE customers through the German hydrogen core grid. The cooperation will also identify possible locations for floating ammonia-to-hydrogen terminals along Germany’s Baltic Sea and North Sea coasts, as well as other potential locations in Europe.
SEFE will manage both the upstream supply portfolio and the downstream part of the supply chain, including global sourcing of clean molecules, the aggregation of hydrogen demand in Germany and Europe as well as investment in the German hydrogen core grid through its subsidiary GASCADE.
Höegh Evi will provide the midstream infrastructure to connect Germany with international hydrogen markets including the transportation of ammonia by ship and the floating import terminal infrastructure. The terminals will provide a supply of dispatchable and baseload-ready clean hydrogen for industrial customers using Höegh Evi’s ammonia-to-hydrogen cracker, the world’s only floating solution to convert ammonia to hydrogen at an industrial scale.
Creating clean hydrogen supply chains from sourcing to customer delivery
Hamead Ahrary, CSO of SEFE highlights: “In our relentless quest to provide our customers with competitive clean hydrogen, we are pleased to be partnering with Höegh Evi to explore the technical and economic viability of different supply chain opportunities. With Höegh Evi’s pioneering technology in the field of floating import terminals including the cracking of ammonia to hydrogen within the terminal and the deep customer understanding we have gained over the last decades, we have the best conditions to develop international clean hydrogen supply chains to make the energy transition a reality.”
Erik Nyheim, CEO of Höegh Evi says: “Establishing global supply chains for hydrogen is a major step towards advancing the energy transition in Germany and Europe. SEFE is leading the way by investing in the German hydrogen core grid and developing global and local partnerships for the production, sourcing and supply of cost-competitive clean hydrogen for Germany and Europe. Höegh Evi is proud to contribute to this endeavor with its world-leading expertise in floating infrastructure and unique hydrogen terminal solutions. In Germany and across Europe, we are developing infrastructure that creates new pathways to decarbonisation via global market corridors for clean hydrogen.”
INERATEC Secures €70M EIB Funding for Europe’s Largest Green Hydrogen E-Fuels Plant in Frankfurt
6 March 2025
- INERATEC agrees up to €40 million venture debt loan with the European Investment Bank and up to €30 million grant from Breakthrough Energy Catalyst to scale-up its e-Fuel production capabilities
- Landmark investment follows EU-Catalyst Partnership initiated in 2021 and supported by the Innovation Fund through the InvestEU Programme.
- Backing demonstrates European commitment to clean energy innovation and follows earlier Horizon 2020 support
Sustainable e-Fuel production pioneer INERATEC today formally agreed a €40 million venture debt loan with the European Investment Bank (EIB) and €30 million grant with Breakthrough Energy Catalyst. The combined €70 million backing will finance construction of Europe`s largest sustainable e-Fuel production plant in Frankfurt and e-Fuel research and development of future, key steps in decarbonising aviation.
The new e-Fuel financing was announced at the EIB-Group-Forum taking place this week in Luxembourg and underscores the strategic importance of e-Fuels in decarbonizing hard-to-abate sectors such as aviation. The new investment will enable INERATEC to scale up production capacity and commercialize its innovative reactor technology, which converts green hydrogen and CO2 into synthetic aviation fuel. The committed project funding, confirmed earlier this year, represents a significant step in commercialisation of INERATEC’s Power-to-Liquid technology, accelerating the transition towards a net-zero future.
Transforming the Energy Landscape with e-Fuels
INERATEC’s production process uses hydrogen, which is then combined with CO2 from biogenic sources like biogas plants or industrial emissions, using INERATEC’s Power-to-Liquid technology. This approach enables the production of synthetic crude oil, which can be processed into a range of synthetic fuels, including Sustainable Aviation Fuel (SAF), marine fuels and e-Diesel. The use of CO2, which would otherwise be released into the atmosphere, reduces the carbon-footprint of the fuel and will help to cut carbon emissions.
At the production site outside Frankfurt, the main feedstock is supplied from the industrial park: the CO2 comes from a biogas plant that recycles waste, and the hydrogen is a by-product from an existing chlorine production facility. By utilizing compact and modular production units, INERATEC’s approach ensures efficient scalability and adaptability to different production sites.
Beyond sustainable fuels for aviation, the synthetic oil that INERATEC produces can also be used as a base chemical for different sustainable products like plastics. This extends the contribution of INERATEC’s technology to sustainable supply for the chemical industry.
Scaling Up to Meet Market Demand
After building and operating plants at demonstration and industrial pilot scale, INERATEC now focuses on scaling up production and optimizing commercial deployment. The funding commitment backed by the EIB and Breakthrough Energy Catalyst will enable the company to deliver commercial-scale production, ensuring a steady supply of e-Fuels to meet increasing market demand and is critical in making synthetic fuels economically viable.
The plant will produce up to 2,500 tons of e-Fuel annually that will be delivered to the aviation sector, among others. One long haul flight between Frankfurt and New York uses 80 tons of kerosene. e-SAF from INERATEC could make flying on this route more sustainable by replacing fossil kerosene fully or partially on many flights. This clearly shows the importance of increasing the e-SAF production capacities beyond a pioneer plant.
The political requirement to shift to more sustainable forms of energy is supported by the European ReFuelEU Aviation-regulation which requires Airlines to use a minimum e-SAF blend of 1.2% by 2030, creating market opportunities.
Bridging Innovation and Climate Goals
The collaboration between INERATEC and the EU-Catalyst Partnership demonstrates how public and private sector partnerships can drive the commercialization of innovative and clean climate technologies. By building on past EU grant support and leveraging new investment mechanisms, this partnership provides a blueprint for scaling up other clean energy solutions.
Accordingly, it shows the EU’s commitment to support innovative technologies that will help EU industry becoming cleaner and stay competitive. The lending by the EIB is made possible thanks to the support of the InvestEU programme, which is backed by an Innovation Fund top-up guarantee. The Innovation Fund is financed by the EU Emissions Trading System.
The transformation of the European industry to clean technologies is being driven by a number of technological innovations, including the efficient production of hydrogen. EIB supports the latter by also funding an electrolysis-project by the Dresden-based start-up Sunfire. Sunfire and INERATEC were partners in a research project in 2019, when both enterprises for the first time demonstrated the production of sustainable e-Fuels from air-captured CO2 and solar power in a fully integrated plant.
EIB Vice-President Nicola Beer said: “The EIB is committed to a competitive net-zero economy, especially in hard-to-decarbonize sectors like aviation. Through partnerships such as the EU-Breakthrough Catalyst initiative, we’re enabling a green transition for transport and are ultimately contributing to making prices of e-Fuels more economical.”
Mario Fernandez, Head of Breakthrough Energy Catalyst: “INERATEC is on a promising path towards demonstrating that e-fuels can be economically produced at scale with the support of catalytic funding. Decarbonizing aviation requires real-world projects to drive down costs and crowd in investment. Breakthrough Energy Catalyst is proud to partner with INERATEC to accelerate deployment and unlock the potential to make e-fuels a reality.”
INERATEC CEO Dr. Tim Boeltken commented: “This funding marks a new era for INERATEC. With the funding commitment from the EIB and Breakthrough Energy Catalyst, we are accelerating the industrialization of e-Fuel production. This will make a tangible impact in reducing CO2 emissions in sectors where direct electrification is not feasible. The focus now is on scaling up and deploying our technology where it is needed most.”
Background information
The EU-Catalyst partnership was launched in 2021 at COP26 in Glasgow by EU-President Ursula von der Leyen, EIB-President Werner Hoyer and Bill Gates, with the aim to develop large-scale green tech projects based in Europe and boost investments in critical climate technologies. The Partnership creates a blueprint for public-private support for clean tech innovative technologies.
The European Investment Bank, as implementing partner of the Commission under InvestEU, has been tasked to deploy for the benefit of this partnership up to €420 million, made available from both Horizon Europe (EUR 200 million), and the Innovation Fund, which has committed EUR220 million. Breakthrough Energy Catalyst mobilizes equivalent private capital and philanthropic grants to fund the selected projects. The EU-Catalyst Partnership does not exclude potential additional contributions from EU Member States or other private partners that decide to further support the projects. Interested projects can apply for support through the Breakthrough Energy Catalyst website.
The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality. The EIB Group, which also includes the European Investment Fund (EIF), signed a total of €88 billion in new financing for over 900 projects in 2023.
All projects financed by the EIB Group are in line with the Paris Climate Accord. The EIB Group does not fund investments in fossil fuels. We are on track to deliver on our commitment to support €1 trillion in climate and environmental sustainability investment in the decade to 2030 as pledged in our Climate Bank Roadmap. Over half of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.
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Breakthrough Energy is committed to accelerating the world’s journey to a clean energy future. The organization funds breakthrough technologies, advocates for climate-smart policies, and mobilizes partners around the world to take effective action, accelerating progress at every stage.
Breakthrough Energy Catalyst is a novel platform that funds and invests in first-of-a-kind commercial projects for emerging climate technologies. By investing in these opportunities, Catalyst seeks to accelerate the adoption of these technologies worldwide and reduce their costs.
Catalyst currently focuses on five technology areas: clean hydrogen, sustainable aviation fuel, direct air capture, long-duration energy storage, and manufacturing decarbonization. In addition to capital, Catalyst leverages the team’s energy-infrastructure-investing and project-development expertise to work with innovators on advancing their projects from the development stage to funding and ultimately, to construction. Learn more about Breakthrough Energy and Catalyst at breakthroughenergy.org.
The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds to mobilise private investments for the European Union’s policy priorities, such as the European Green Deal. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that will invest in projects leveraging the EU budget guarantee of €26.2 billion. To this amount, further guarantees have been added from the EU’s Horizon programme and the Innovation Fund to support initiatives such as the EU-Catalyst partnership.
The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.
EIB venture debt is a quasi-equity investment product suitable for early and growth stage ventures, combining a long-term loan with an instrument linking the return to the performance of the company. Since 2015, the EIB has invested €6 billion in Venture Debt, backing over 200 companies and realising over 50 exits. With the backing of InvestEU, the EIB aims to support European ventures and scale-ups in the cleantech, deep-tech and life sciences sectors.
The Innovation Fund: With an estimated revenue of €40 billion from the EU Emissions Trading System between 2020 and 2030, the Innovation Fund aims to support innovative net-zero technologies and support Europe’s transition to climate neutrality. The Innovation Fund contributes a €220 million top-up guarantee to the InvestEU Programme for the EU Catalyst Partnership, having enabled until now more than €100 million in lending from EIB.
INERATEC is committed to defossilizing and decarbonizing the world. The company produces e-Fuels and e-chemicals: carbon-neutral fossil fuel substitutes for use in the aviation, shipping and chemical industries.
Its modular, scalable plants use renewable hydrogen and biogenic CO2 to produce synthetic kerosene, gasoline, diesel, waxes, methanol or natural gas. It is building what will be the world’s largest e-fuels plant to date, in Frankfurt, which will produce up to 2,500 tonnes of ultra-low-carbon aviation fuel per year. The company is based in Karlsruhe, Germany and backed by diverse international investors.
Saudi Arabia signs deal with Germany to export green hydrogen to Europe
4 February 2025
Saudi Arabia will export 200,000 tons of green hydrogen to Europe annually by 2030 under a memorandum of understanding signed with Germany, Anadolu has reported.
The Saudi Energy Ministry said that the agreement was signed between the Saudi ACWA Power and Germany’s SEFE Energy Company on Monday evening. Under the terms of the MoU, the partners will establish a hydrogen bridge between Saudi Arabia and Germany, with an initial target of supplying 200,000 tons of green hydrogen annually by 2030.
“This MoU with SEFE marks a significant milestone in accelerating the green hydrogen economy in Europe,” said ACWA Power’s CEO Marco Arcelli. “By combining ACWA Power’s proven expertise in green hydrogen production with SEFE’s extensive market knowledge, we are forming a strong partnership to deliver substantial quantities of green hydrogen to Germany and beyond, making a meaningful contribution to global decarbonisation efforts.” German President Frank-Walter Steinmeier is currently visiting Saudi Arabia as part of a regional tour that also includes Jordan and Turkiye. Earlier, Germany signed hydrogen import agreements with Brazil and Norway as part of its ongoing search for new energy sources due to the Russia-Ukraine War.
Hydrogen is considered the optimal energy to reduce carbon and greenhouse gas emissions and is used for the operation of large industrial machinery, heavy vehicles and heating systems.
JCB Hydrogen Engine Secures European Approval, Pioneers Green Construction Technology
14 January 2025
JCB has achieved a landmark milestone in the development of its hydrogen combustion engine, becoming the first construction equipment manufacturer to secure certification for commercial use across Europe. The company announced today that 11 licensing authorities, including those in the UK, Germany, and France, have granted approval for the engine, with more countries expected to follow in 2025. This breakthrough positions JCB at the forefront of sustainable technology for construction and agricultural machinery.
The hydrogen combustion engine, developed over three years with an investment of £100 million, represents a significant step towards zero-emission solutions in heavy equipment. A dedicated team of 150 engineers spearheaded the project, focusing on delivering a viable alternative to traditional fuels. The engine has already been deployed in evaluation models such as backhoe loaders, Loadall telescopic handlers, and generator sets, with advanced real-world testing underway on customer sites.
Lord Bamford, Chairman of JCB, stated “JCB has proved that hydrogen combustion is a proper zero-emissions solution for construction and agricultural equipment. This formal certification clears the path for widespread adoption across Europe and sets a positive tone for the future of hydrogen technology. I am particularly proud of our British engineers who have worked tirelessly to make this possible.”
The Netherlands’ Vehicle Authority RDW was the first to issue official certification for the hydrogen engine, with other European authorities quickly following suit. The approved countries now include Great Britain, Northern Ireland, Germany, France, Spain, Belgium, Poland, Finland, Switzerland, and Liechtenstein. These approvals ensure that JCB’s hydrogen engines can now be sold and operated across key markets, marking a pivotal moment in their commercialisation.
JCB has produced more than 130 evaluation engines, which are demonstrating promising results during testing. The engines are being assessed in diverse applications, proving their reliability and performance under real-world conditions. The certification aligns with increasing global efforts to reduce carbon emissions and explore hydrogen as a sustainable energy source.
Over-subscribed European Hydrogen Bank auction receives 61 bids for Innovation Fund support, including 8 maritime projects
7 March 2025
The European Hydrogen Bank’s second auction for the production of renewable hydrogen has attracted 61 bids from projects in 11 countries with the European Economic Area (EEA) . Eight of the bids were submitted under the dedicated maritime topic by hydrogen producers with off-takers in the maritime sector.
The total grant support requested is more than €4.8 billion, four times the available budget of €1.2 billion provided by the Innovation Fund. All bids taken together account for a total electrolyser capacity of around 6.3 Gigawatts (GWe). Over ten years, these projects would produce more than 7.3 million tonnes of renewable hydrogen. On a yearly basis, this would cover 7% of the EU’s REPowerEU ambition for domestic renewable hydrogen production in 2030.
Producers of renewable hydrogen, as defined in the Renewable Energy Directive and its Delegated Acts, have submitted bids for support in the form of a fixed premium per kilogram of renewable hydrogen produced over a period of up to 10 years. The premium, for which project promoters bid in the auction, covers the gap between the cost of production and the price buyers are currently willing to pay for renewable hydrogen.
EU Member States can also benefit from an “Auctions-as-a-service” mechanism, whereby the results of the auction can attract further national funding for additional projects, in full respect of the EU State aid rules. Under the second auction of the European Hydrogen Bank , Spain, Lithuania, and Austria have participated in this scheme, as announced in November 2024, with the contribution of up to €836 million in national funds. The Commission invites other Member States to take advantage of this service.
Next Steps
The European Climate, Infrastructure and Environment Executive Agency (CINEA) is now evaluating submitted bids on the pass/fail qualification criteria outlined in the call text. All passing bids will then be ranked according to their bid price. CINEA plans to inform about the evaluation results by the end of May 2025 and successful applicants will be invited to prepare and sign corresponding Grant Agreements.
The Grant Agreements are expected to be signed by November 2025 at the latest. The selected projects will have to reach financial close within 2.5 years and start producing renewable hydrogen within five years of signing the grant agreement. They will receive the awarded fixed premium subsidy for up to 10 years upon certified and verified renewable hydrogen production.
In parallel to finalising the evaluation, the Commission will draw on the lessons learned from this second auction to prepare the Terms & Conditions for a third auction for hydrogen, which it aims to launch before the end of 2025.
Background
With an estimated revenue of €40 billion from the EU Emissions Trading System (EU ETS) between 2020 and 2030, the Innovation Fund aims to create financial incentives for companies and public authorities to invest in cutting-edge net-zero technologies and support Europe’s transition to climate neutrality.
The European Hydrogen Bank is an initiative to facilitate the EU’s domestic production and imports of renewable hydrogen. It aims to unlock private investment in the EU and in third countries by addressing investment challenges, closing the funding gap, and connecting future renewable hydrogen supply to consumers, helping to meet the objective of 20 million tonnes of hydrogen in the EU energy mix by 2030. It will also allow the Commission to collect reliable data about the EU’s renewable hydrogen project pipeline, the level of competition for this kind of support, the costs of renewable hydrogen production and its market price.
In its first auction in 2023, the Innovation Fund allocated €694 million in grants to support six projects producing hydrogen that qualifies as Renewable Fuels of Non-Biological Origin (RFNBO), meaning it is generated using renewable electricity and meets the EU’s sustainability criteria.
In addition, the Innovation Fund has also allocated more than €12 billion to more than 200 innovative projects across different sectors through its previous general calls for proposals.
With a budget of €2.4 billion and €1 billion respectively, the Innovation Fund 2024 Call for Net-Zero Technologies (IF24Call) and Battery Call (IF24Battery) are still open until 24 April 2025. The IF24Call will support decarbonisation projects of different scales, as well as projects focusing on manufacturing components for renewable energy, energy storage, heat pumps, hydrogen production, and pilots. The IF24Battery call will provide support for projects that can produce innovative electric vehicle battery cells or deploy innovative manufacturing techniques, processes and technologies.
EU backs North Africa hydrogen pipeline, but is it a green dream?
Algeria, Tunisia, Austria, Germany and Italy have agreed to construct a hydrogen pipeline to bring clean fuel generated with renewable energy in North Africa to the European Union, in a move hailed as one of the bloc’s “most important renewable energy projects”.
But analysis of Algeria and Tunisia’s green hydrogen strategies reveals that neither country is likely to be in a position to export the fuel in any meaningful quantity when the pipeline is due to start operating in 2030.
Experts told Climate Home News that despite the hydrogen hype, there are serious challenges for North Africa to become a major exporter of green hydrogen to the EU by 2030. Some question whether the pipeline should be developed at all.
Last week, ministers from each country along with Tunisia’s ambassador to Italy met in Rome where they confirmed their intentions to build the SoutH2 Corridor.
The first-of-its kind hydrogen pipeline, 3,500-4,000 kilometres long, would run under the Mediterranean Sea. It aims to connect hydrogen production centres in Algeria and Tunisia – which have yet to be built – to the Italian island of Sicily and consumer hubs in Austria and Germany by repurposing existing gas infrastructure along 65% of the route.
The corridor “is crucial for the development of an interconnected and diversified hydrogen backbone” in the EU, the consortium of European and Algerian companies developing the project says on its website.
Green hydrogen ramp-up
The EU is betting on importing large amounts of green hydrogen to wean highly polluting sectors and hard-to-electrify industries such as steel production, fertilisers and long-distance transport off climate-wrecking fossil fuels.
With its abundant sunshine, vast renewable energy potential and relative proximity to Europe, EU officials hope to tap into North Africa’s resources and secure green hydrogen supplies.
“The Southern Hydrogen Corridor is one of the largest and most important renewable energy projects of our time,” Philipp Nimmermann, Germany’s State Secretary for the Ministry for Economic Affairs and Climate Action, said in a statement.
“We can use North Africa’s immense potential for renewable energies, advance the hydrogen ramp-up in Germany and support the EU’s climate targets,” he added.
According to the project consortium, the pipeline, when fully operational, could deliver more than 40% of the EU’s target to import 10 million tonnes of green hydrogen by 2030.
But Algeria and Tunisia anticipate large-scale green hydrogen production to be at least a decade away, calling into question plans for exports in the next five years.
Adrian Odenweller, a researcher at the Potsdam Institute for Climate Impact Research (PIK), told Climate Home that the EU should “certainly not count on the delivery” of green hydrogen from Algeria and Tunisia any time soon.
Odenweller said he does “not expect to see any hydrogen imports via [the SoutH2 Corridor] by the year 2030” and urged policy makers to interpret project announcements “with caution”.
“Green hydrogen production projects have a poor track record and often get delayed. I would expect this to be even worse for massive infrastructure projects such as pipelines that require international coordination,” he said.
Mismatched expectations
Green hydrogen is produced by splitting water into hydrogen and oxygen using renewable electricity – as opposed to blue or grey hydrogen, which uses gas.
But transporting green hydrogen is a logistical challenge. Channelling it in a gaseous form through a pipeline is generally cheaper and more efficient that liquefying it to transport it on ships but requires relative proximity to where the fuel is consumed.
Algeria and Tunisia do not currently produce green hydrogen. Algeria – a top gas exporter – and Tunisia generate nearly all of their electricity from gas. The share of solar power in electricity generation is growing but accounted for less than 1% in Algeria in 2023 and 4% in Tunisia the same year, according to BloombergNEF data.
Over the last two years, both countries have released green hydrogen strategies. But neither country foresees large-scale hydrogen production until the mid-2030s.
By 2030, the SouthH2 Corridor will have capacity to import 4 million tonnes of hydrogen per year into the EU. But Algeria and Tunisia expect to have combined capacity to export around 330,000 tonnes of hydrogen – or 8% of the pipeline’s capacity – by then.
Algeria’s hydrogen strategy suggests it could produce around 30,700 tonnes of green hydrogen by 2030. The country foresees production of more than 1 million tonnes from 2040. Tunisia plans to export 300,000 tonnes of green hydrogen to the EU by 2030 and 1.6 million tonnes by 2040.
Neither the Algerian nor Tunisian governments responded to requests for comment.
‘Reality check’
According to data from the International Energy Agency (IEA), less than 1% of the 97 million tonnes of hydrogen produced globally in 2023 was green or “low emissions” hydrogen.
Growth in the sector has been slow, with many projects struggling to move beyond very early stages of development. The IEA recently found that investments in electrolysers and green hydrogen have lagged because of uncertainty over costs, demand and regulatory frameworks.
A recent paper published in Nature Energy by PIK found a “huge gap between [hydrogen] announcements and actual deployment”. They tracked almost 200 projects over three years and determined that only 7% of the capacity announced was completed on schedule.
In 2024, the EU’s own auditors called for “a reality check” on its green hydrogen production and import targets, describing them as “overly ambitious”. But the EU Commission said it stood by the targets despite the challenges. The Commission declined to respond to Climate Home’s questions on the SoutH2 Corridor.
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Abdurahman Alsulaiman, from the Oxford Institute for Energy Studies, argued that the EU’s hydrogen import target is “highly ambitious” but underpinned by a sound political calculation.
“As more details about financial support, trade economics, and standardisation become available to investors, the target will become more of a reality rather than just an ambition,” he told Climate Home. It is also placing “urgency “ on potential production hubs such as North Africa even though “the economics of the green hydrogen trade are still at a very nascent stage”, he added.
Diverting energy and water away from needs
But others have questioned whether Algeria and Tunisia should use clean electricity to produce hydrogen for export rather than to meet their own energy needs.
“Instead of planning to export green hydrogen to Europe, North African countries should focus on using domestically produced hydrogen to decarbonise their own high energy-intensive industries or increasing their share of renewables in power generation,” Ana Maria Jaller-Makarewicz, of the Institute for Energy Economics and Financial Analysis, told Climate Home.
Tunisia already struggles with energy shortages and is dependent on gas and electricity imports from Algeria to meet its growing electricity needs, said Saber Ammar, a Tunisian researcher at the Amsterdam-based Transnational Institute think-tank.
The EU is pushing for a green hydrogen economy because “they dominate the [hydrogen] value chains and technologies” and can outsource all “the socio-environmental costs to the peripheries”, he said.
Using scarce renewable electricity and even scarcer water resources to produce green hydrogen for Europe “is not only a paradoxical and foolish investment but it also underscores the political hegemony at play”, he added.
Coal-reliant South African provinces falling behind on just transition
Drought-stricken Tunisia and Algeria are already experiencing water shortages and climate change is likely to exacerbate water scarcity in the region.
Former Algerian parliamentarian Nadjib Drouiche, a senior researcher in desalination and water policy, supports Algeria’s move to become a hydrogen-exporting nation.
However, North Africa’s “water scarcity, exacerbated by climate change, necessitates a cautious approach,” he told Climate Home.
“Prioritising domestic water needs, implementing sustainable water management strategies like efficient desalination, wastewater reuse and water conservation… are crucial before large-scale green hydrogen production for export can be considered,” he emphasised.
Energy partners pledge hydrogen-and-ammonia Asia–Europe trade route
13 February 2025
German energy company Uniper and Kyuden International, a subsidiary of Kyushu Electric Power Group, have signed a Memorandum of Understanding (MoU) to explore hydrogen and ammonia trading, renewable energy, and carbon capture utilisation and storage (CCUS).
The partnership is a two-way expansion strategy: Kyuden aims to enter the European market using Uniper’s energy infrastructure, while Uniper sees Asia as a key growth region for hydrogen and ammonia supply chains.
“Through our collaboration with Uniper, we aim to expand business opportunities in Europe and other regions by leveraging Uniper’s extensive expertise,” said Takashi Mitsuyoshi, President of Kyuden International. “Meanwhile, Uniper seeks to promote business development in Asia, where our company has abundant knowledge.”
For Uniper, the deal strengthens its position in Asia’s emerging hydrogen economy, where Japan is heavily investing in ammonia as a co-firing fuel for power generation. Kyuden, for its part, gains access to Uniper’s European market presence, where hydrogen demand is rising amid efforts to reduce reliance on fossil fuels.
“By combining our strengths, we aim to contribute meaningfully to Japan’s decarbonisation efforts and explore new business opportunities,” said Andreas Gemballa, CCO of Global Origination at Uniper.
The partnership is an important development in global energy trade dynamics, bridging two of the world’s largest industrial energy markets.
Hydrogen demand in Europe is projected to increase by 127% from 2030 to 2040, and 63% from 2040 to 2050, while electrolytic hydrogen production capacity across the continent has more than doubled in the past two years.
In Asia-Pacific, demand sits at over 26.5 million tonnes per year and is set to grow at a CAGR of around 4% until 2034. The largest share of demand is going towards ammonia production – an industry currently worth $94bn.
Airbus delays its ZEROe hydrogen aircraft as UK CAA expands hydrogen programme
10 February 2025
In a significant setback to ambitions for large-scale hydrogen-powered commercial aircraft, Airbus has reportedly delayed its flagship ZEROe programme, in which it had planned to launch a hydrogen-powered commercial airliner by 2035. According to the Financial Times, the timeframe could be pushed back by between five and 10 years and the budget for the programme has been cut by a quarter. A roadmap just published by the European aviation industry downgraded the contribution of hydrogen aircraft to its Net Zero by 2050 target. A more bullish UK Civil Aviation Authority, on the other hand, has announced it is to expand its Hydrogen Challenge programme, as part of a broader exploration of new opportunities to help decarbonise the nation’s air transport sector, and to help make the UK a leader in hydrogen-powered aviation.
Airbus confirmed French reports that the ZEROe programme was to be delayed due to slow development of essential technology, but did not elaborate on its future. In a statement published by Reuters, the airframer said: “Hydrogen has the potential to be a transformative energy source for aviation. However, we recognise that developing a hydrogen ecosystem – including infrastructure, production, distribution and regulatory frameworks – is a huge challenge requiring global collaboration and investment.”
The Financial Times report also said Airbus has stopped plans to test hydrogen fuel cell engines on a testbed Airbus A380.
The announcement slipstreamed a separate decision by Airbus Helicopters to suspend its CityAirbus NextGen electric air taxi programme, citing immaturity in battery technology, and a parallel decision by Germany’s air taxi startup Volocopter to file for insolvency.
In 2020, Airbus abandoned the E-Fan X hybrid-electric programme launched in 2017 with partners Rolls-Royce and Siemens to develop a hybrid-electric aircraft, instead to focus on delivering hydrogen-powered passenger aircraft and unveiled three potential ZEROe designs. The serious delay to the ZEROe programme casts serious doubt over the short-to-medium term viability of this pathway for commercial aviation, with the airframer’s comments referring not just to production and distribution of hydrogen for air transport but also the preparedness of regulators and infrastructure providers including airports and energy producers, with which it has been working closely.
One major factor continually flagged in discussions about zero-emission aircraft is the cost of generating sufficient renewable electricity to create green hydrogen, or to directly charge new electric aircraft, and the ability or willingness of energy providers and airports to make heavy investments in new technologies and fuels without certainty of demand.
The second edition of the European aviation industry’s Destination 2050 roadmap just published, four years after the first, shows a notable reduction in the contribution by hydrogen-powered aircraft to its net zero emissions by 2050 decarbonisation target, from 20% to 6%. This, says the report, is due to a lower than anticipated market share of hydrogen-powered aircraft and their later entry in service, from 2035 to 2040. “If market introduction would be pushed back even further, only a marginal contribution by 2050 remains, such that the return on current R&D investments being made would only come in the second half of this century,” it adds.
The suspension of the ZEROe programme blurs industry perspectives on hydrogen-powered aviation, coming closely after an enthusiastic announcement by the UK Civil Aviation Authority that it was expanding and extending its Hydrogen Challenge programme. Announcing a second round of the research project, the CAA said it was focused on testing hydrogen propulsion, developing airport infrastructure for hydrogen-powered aircraft and innovating aircraft systems for hydrogen powered operations.
The Hydrogen Challenge was initiated last year to help prepare the UK aerospace industry for the transition to zero carbon emission fuels, attracting multiple aerospace companies to partner with the CAA in investigating and developing hydrogen infrastructure and technology.
“These trials keep the UK on course to be a world leader in hydrogen propulsion,” said Tim Johnson, Director of Communications, Strategy and Policy at the CAA. “We are working with some of the most innovative companies and minds to better understand this technology and how it might be introduced safely in the aerospace sector. In doing so, it offers the potential to enable a more sustainable aerospace system and support UK economic growth.”
The next phase of the Hydrogen Challenge will focus on four key elements: designs of new aircraft and remotely piloted systems powered by hydrogen fuel cells; airport infrastructure changes to enable safe storage of and refuelling with hydrogen; test flights, safety assessments and demonstrations to help refine performance and deal with regulatory challenges; and research by leading British aeronautical institutes to improve the sector’s understanding of hydrogen fuel.
The CAA highlighted 12 diverse projects involving key partners as part of what it has dubbed its ‘hydrogen sandbox’.
Aircraft manufacturer Cranfield Aerospace Solutions, which is moving to certificate and commercialise hydrogen-electric powered Britten-Norman Islander commuter aircraft, will use its Project Fresson 1a programme to test potential regulation of the new propulsion systems.
Hydrogen-electric powertrain developer ZeroAvia, which is also working towards regulatory approval of its entry-level ZA600 system, is studying the transition to widespread use of hydrogen-powered aircraft, including safe storage, distribution and refuelling at airports and deployment on aircraft, while Swift Aircraft is exploring hydrogen propulsion in new zero-emission training aircraft for use at flight schools.
Remotely controlled aircraft are also being studied as part of the Hydrogen Challenge, with Qdot Technology developing a long-range, zero emission, high-capacity aircraft for logistics, monitoring and supporting offshore operations, while Stratospheric Platforms is building the Stratomast, a high altitude, liquid hydrogen-powered craft designed to deliver high capacity, low latency data connectivity direct to devices on the ground.
Engine maker Rolls-Royce is designing gas turbines which are compatible with zero emission fuels including hydrogen and partnering with low-cost airline easyJet to understand the new technologies, while Oxford University is studying the scientific challenges of pressurising, heating and combusting initially cryogenic hydrogen to enable combustion within gas turbines.
Intelligent Energy is studying regulatory and certification issues of integrating hydrogen fuel cell systems into the aerospace sector, while Ultima Forma is creating vacuum containment barrier systems for use in storing liquid hydrogen, and HyFIVE, a collective of UK aerospace and academic leaders, is developing, testing and validating architecture for modular, scalable cryogenic hydrogen fuel systems.
At Kirkwall Airport, the gateway to Scotland’s outlying Orkney Islands, an alliance has been formed between Highlands and Islands Transport Partnership (HITRANS), Highlands and Islands Airports (HIAL), regional airline Loganair, AGS, Orkney Islands Council and the European and Marine Energy Centre (EMEC) to test how hydrogen fuel infrastructure can be deployed at airports and on aircraft across Scotland.
Meanwhile, at Exeter Airport in south-west England, Regional & City Airports is trialling multiple approaches to hydrogen storage and refuelling.
The CAA said the hydrogen trials would last three years to help build the development potential of participating companies, adding that the outcomes of the 2024 Hydrogen Challenge would be released “in the near future”.