Sempra, Avangrid to pursue large-scale green H2, ammonia projects in US

US energy company Sempra (NYSE:SRE) and Avangrid Inc (NYSE:AGR) have joined forces to probe the potential for developing green hydrogen and ammonia projects in the US.

Under a non-binding heads of agreement (HOA) between Avangrid and Sempra Infrastructure, the companies will seek to identify opportunities and then estimate the potential for working on large-scale green hydrogen projects, they said on Wednesday.

The partnership aims to address the decarbonisation needs of both US and international customers. According to the tie-up, the production of hydrogen with electricity from renewable energy sources can provide an effective solution for a range of industries and lower their carbon footprint.

"The U.S. is facing unprecedented challenges and opportunities to develop competitive solutions that meet its growing energy needs, while also aiming to transition to a cleaner and more sustainable energy future," said Pedro Azagra, CEO of Avangrid. His counterparty at Sempra Infrastructure highlighted the need for “significant” infrastructure facilities to enable the widespread adoption of the technology.

Avangrid is majority-owned by Spanish electric utility group Iberdrola SA (BME:IBE).

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