Austrian energy company Verbund AG (VIE:VER) and Borealis AG are partnering on a project for the production of green hydrogen that will be used to produce fertilisers, melamine and technical nitrogen at the manufacturer's site in Linz.
The joint project has the EU's IPCEI designation and involves the construction of a 60-MW electrolysis plant which will be powered with green electricity. The facility will produce green hydrogen for Borealis' manufacturing site and will also provide grid services for the transmission network. The oxygen released during the electrolysis process will be used also for production.
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The electrolysis plant should come into operation in 2025 and offset up to 90,000 tonnes of carbon emissions per year.
"For Borealis, green hydrogen is an alternative to natural gas in ammonia production, and using it will lead to a reduction in CO2 emissions. This joint effort is another example of how we are re-inventing essentials for sustainable living," said Borealis' chief executive Thomas Gang.
The Vienna-based chemicals and fertilisers company, which is majority owned by oil and gas major OMV AG (VIE:OMV), has already undertaken steps to green its operations. Most recently, Borealis agreed to procure 800 GWh of wind power in Finland to support its production facilities in Porvoo. It also installed a 1-MWp photovoltaic array on the roof of its production site in Linz to reduce its carbon footprint.