Global energy trading giant Vitol Group has secured a 10% equity interest in Norwegian green hydrogen producer, Gen2 Energy, as it sets its sights on adding more carbon-free resources to its portfolio.
Financial details were undisclosed.
As the world shifts to lower carbon energy solutions, Vitol’s most recent acquisitions reflect the energy transition as they are replete with carbon capture strategies, green liquefied natural gas facilities, as well as involvement in multiple decarbonization strategies as part of their sustainability commitment and environmental, social governance strategies.
“Hydrogen will be a core component of the energy mix of the future and key part of the path to net-zero,” said Vitol managing director Chris Bake.
Green hydrogen, unlike blue hydrogen, which is produced from fossil fuels, can be produced without any greenhouse gas emissions using water electrolysis.
Gen2, whose mission is to repurpose waste materials into various different energy sources, says it wants to use Norway’s surplus hydroelectric power to produce green hydrogen for European customers.
Once an initial hydrogen facility in northern Norway is completed, the site is to have capacity of more than 80 MW of green hydrogen, with production of 11.7 kilo tons/year. Production is projected to begin the end of 2023.
Gen2 also is developing a second green hydrogen facility in southwestern Norway that is projected to have a capacity of 300 MW.
Gen2 CEO Jonas Meyer said with the Vitol anchor investment, the company has completed its “strategic financing round…Gen2 Energy is working diligently to build large-scale production and distribution of green hydrogen with zero emissions throughout the value chain, and we could not have wished for a better partner than Vitol.”
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