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.