How Germany and Norway Boost Europe's Hydrogen Supply Chain
Germany's Securing Energy for Europe (SEFE) and Norwegian energy infrastructure behemoth Höegh Evi are part of a strategic alliance that focuses on developing supply chains for clean hydrogen.
The partners plan to create international corridors facilitating the transport of hydrogen, produced from ammonia, to Germany and various other European destinations.
Setting up the hydrogen framework
Central to their agreement is the establishment of a detailed technical and commercial framework necessary for a seamless hydrogen supply chain.
The process involves sourcing ammonia, which is then transported by maritime channels to floating import terminals strategically located across Europe.
Here, ammonia undergoes a conversion process known as "cracking," turning it into hydrogen.
Once the conversion is completed, SEFE handles the distribution of this clean hydrogen throughout Germany's hydrogen core grid to various customers.
Höegh Evi manages the midstream challenges including the marine transport and the floating terminals equipped with the state-of-the-art conversion technology.
The alliance highlights potential locations for these terminals along Germany's Baltic and North Sea coastlines and other parts of Europe.
These terminals are vital, provided they ensure a continuous and reliable supply of hydrogen, crucial for industrial applications at a large scale.
SEFE's roles encompass global ammonia sourcing, aggregating hydrogen demands within Germany and Europe, and significant investments in the German hydrogen grid via its subsidiary, GASCADE.
On the other side, Höegh Evi's responsibilities include overseeing the ammonia transportation and the operational management of the floating terminals.
These terminals are designed to offer a "dispatchable and baseload-ready" hydrogen supply — a crucial feature for meeting varied energy demands while maintaining a consistent industrial output.
Enhancing Europe's hydrogen capacity
The MoU between SEFE and Höegh Evi builds upon previous agreements, cumulatively reflecting a broader ambition to diversify Europe's energy sources and fortify its energy security.
In 2024, SEFE finalised a deal involving Brazil’s Eletrobras and Kuwait's EnerTech, planning to deliver a whopping 200,000 tonnes of green hydrogen to Germany by 2030.
This hydrogen, sourced from Brazil’s vast hydropower resources, underscores a strong commitment to sustainable energy practices.Additionally, Höegh Evi, following its recent rebranding from Höegh LNG, marks a strategic pivot not just in name but in focus, now prioritising hydrogen and ammonia alongside carbon capture and storage (CCS) solutions.
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
One prominent project includes the development of a new floating hydrogen import terminal in partnership with the French port of Port-La Nouvelle, which is set to become a crucial hub for hydrogen imports into Europe.
This project is pivotal for expediting the clean energy shift across the continent.
“Establishing global supply chains for hydrogen is a major step towards advancing the energy transition in Germany and Europe," adds Erik Nyheim, CEO of Höegh Evi."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 endeavour 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.”
A critical leap toward a sustainable future
Hydrogen's role in shaping a sustainable European energy future is increasingly clear, with the SEFE and Höegh Evi partnership critical.
The collaboration tackles some of the most daunting logistics and infrastructure challenges associated with large-scale hydrogen production, conversion and distribution.
The integration of innovative floating infrastructure with strategically positioned terminals paves the way for a robust hydrogen supply network throughout Europe.
As demand surges for cleaner energy solutions, this partnership is both timely and fundamental, serving as a pillar in building a resilient and sustainable energy ecosystem across the continent.
Höegh Evi's flexible, floating solutions complement SEFE’s comprehensive hydrogen strategy, enabe both companies to leverage their expertise effectively and make impactful strides towards energy security and sustainability throughout Europe.
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