Germany's HH2E buys hydrogen production capacity from Norway's Nel (updated)

Mcphy Energy SA

06/01/2023 07:19

(Adds executive quote, context)
       BERLIN/FRANKFURT, Jan 6 (Reuters) - German energy firm
HH2E will buy 120 megawatts worth of hydrogen production
capacity from Norway's Nel ASA  NEL.OL , it said, reflecting
efforts to ramp up Germany's renewables capacity to compensate
for Russian fuel imports and meet climate targets.
    HH2E said its capacity order, with a value of more than 30
million euros ($32 million), is the largest to date in Germany
for green hydrogen, which is produced using renewable energy to
power electrolysis plants that split water into hydrogen.
    The two parties are expected to sign the final purchase of
the order in the next three months, HH2E said, adding that it
expects its Lubmin plant in north eastern Germany to start
producing green hydrogen in the second half of 2025.
    "One of the prerequisites for reaching our growth ambitions
is the availability of high-quality electrolysers in Europe,
such as the ones that Nel will supply," HH2E co-founder
Alexander Voigt said.
        Nel, which competes with Germany's Thyssenkrupp Nucera
 TKAG.DE , Britain's ITM Power  ITM.L  and France's McPhy Energy
SAS  MCPHY.PA , said the two 60 megawatt facilities could be
significantly expanded in later stages.
  
    Friday's announcement comes following a visit by German
Economy Minister Robert Habeck to Norway where the two countries
announced cooperation plans to secure future green energy
supply.  urn:newsml:reuters.com:*:nL8N33Q1RR
($1 = 0.9508 euros)
 (Reporting by Riham Alkousaa and Christoph Steitz, editing by
Emma-Victoria Farr and Paul Carrel)
 ((Riham.Alkousaa@thomsonreuters.com; Twitter: @RihamKousa;))