TotalEnergies, Air Products sign green hydrogen supply deal

French energy group TotalEnergies SE (EPA:TTE) and US industrial gases and chemical company Air Products (NYSE:APD) have signed a 15-year agreement, under which Air Products will deliver 70,000 tonnes of green hydrogen a year starting in 2030 to TotalEnergies’ Northern European refineries.

This is the first long-term deal that TotalEnergies signs following its call for tenders for the supply of 500,000 tonnes per year of green hydrogen to decarbonise its European refineries, launched in September 2023.

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Air Products will supply the green hydrogen from its global network.

According to a joint statement by the companies on Friday, the contract is a first step towards reaching TotalEnergies' goal of cutting net greenhouse gas emissions from its operated oil and gas operations by 40% by 2030, relative to 2015 levels.

“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,” said Air Products’ chairman, president and CEO Seifi Ghasemi.

In addition, TotalEnergies and Air Products have inked a memorandum of understanding, which entails the signing of a first power purchase agreement (PPA) for 150 MW from a solar project in Texas. The companies will also look at PPA opportunities in the UK, Poland and France.

“We are also happy to extend our partnership with Air Products by becoming ourselves a supplier of green power to Air Products and contributing to Air Products’ own decarbonisation roadmap,” said TotalEnergies chairman and chief executive Patrick Pouyanne.