In a joint venture working with the Norwegian start-up Gen2Energy, Hoegh LNG is making changes to enhance its gas transportation expertise. This change came in accordance with the maritime stirring towards the adoption of green hydrogen globally. The plan is to develop the infrastructure required by this future fuel source alternative.
The collaboration is in line with the future market beliefs, which are foreseen to be mostly occupied by green hydrogen. Their vision is to be the first, in transporting free hydrogen over oceans, by large-scale developments. Parallelly, both the companies would be exploring the carbon-free propulsion system usage and the possibilities of injecting hydrogen into transmission grids of natural gas for vessels.
Jonas Meyer (CEO, Gen2Energy), on a positive note, said “The agreement brings us one step closer to the goal of providing European energy markets with fossil-free hydrogen on a large scale, and we are extremely pleased to engage in this important collaboration with such an experienced actor".
"Hoegh has close to 100 years experience from the maritime industry, including handling and transport of natural gas, which is valuable when developing a new market for seaborne transport of hydrogen.” - added Jonas Meyer.
Several advancing efforts and numerous research works are in process to adopt hydrogen, as green alternative green fuel for the future. But, the biggest problem which needs to check.
While there are multiple research and development efforts underway to support the adoption of hydrogen as a future green fuel, one of the largest challenges will be building the supply chain to meet the potential global demand. According to the companies, green hydrogen can be produced at cost-competitive levels, but several of the optimal production sites are at remote locations, making transport by land expensive. By transporting hydrogen at sea, Hoegh and Gen2Energy aim to reduce both transport costs and CO2 emissions significantly.
“We are delighted to be both a shareholder and a partner with Gen2Energy on seaborne hydrogen transportation,” said Sveinung Stohle, President & CEO of Hoegh LNG. “It is a critical element of the hydrogen value chain and one that Hoegh LNG is uniquely positioned to serve. Gen2Energy has the potential to be one of the first large-scale suppliers of green hydrogen to market with Hoegh LNG taking a leading infrastructure role.”
Hoegh LNG will use its experience in shipping and import of natural gas, establishing energy infrastructure, and maintaining complex logistics chains. Gen2 Energy will contribute with its knowledge and experience in the production and handling of green hydrogen. Concurrently, Hoegh has agreed to acquire an unspecified minority stake in Gen2Energy.