Nitrogen products manufacturer OCI NV (AMS:OCI) will source 1 GW of green hydrogen from the NorthH2 project to develop integrated green ammonia and methanol value chains in the Netherlands in an effort to decarbonise its production and the downstream food, fuel and consumer goods value chains.
A partnership has been agreed with the consortium developing the NorthH2 project, including Shell Plc (LON:SHEL), Equinor (NYSE:EQNR), RWE AG (ETR:RWE), Gasunie and Groningen Seaports, OCI said on Thursday. Dutch power and gas supplier Eneco Groep will also join the initiative as an investor.
The NorthH2 project, which is still in the study phase, aims to build up to 4 GW of electrolysis capacity in the port city of Eemshaven on the North Sea coast and the necessary offshore wind capacity by the end of the decade.
The location of OCI’s production sites allows their connection to the planned pipeline that will transport the green hydrogen produced in Eemshaven. The green ammonia and methanol could be then used in OCI's production processes and as feedstock in a wide range of sectors and products such as transportation, furniture, clothing, healthcare and cosmetics, automotive and windmill blades.
The use of 1 GW of green hydrogen will enable OCI to cut carbon emissions by 900,000 tonnes per year and make a significant contribution to the Netherlands' climate goals.
“Ammonia and methanol are the most effective green hydrogen carriers,” said OCI's chief executive Ahmed El-Hoshy. “That is why OCI is accelerating the production of green ammonia and methanol to become one of the largest producers of clean hydrogen fuel and feedstock technology in the world. We are scaling the world’s transition to hydrogen and the clean economy," he added.
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