Höegh LNG gets in on hydrogen with minority stake in Gen2 Energy

HÖEGH LNG and Gen2 Energy have partnered up to develop a seaborne logistics chain for green hydrogen. 

The two companies aim to take what they said is a “first mover position” in seaborn transport of green hydrogen. 

In a press release, the companies said green hydrogen can be produced at cost-competitive levels, but several of the best production sites are in remote locations, making land transport expensive.  

By transporting hydrogen at sea, the two parties aim to reduce both transport cost and carbon dioxide emissions significantly. 

Höegh LNG’s contributions mainly relate to the extensive experience of shipping and import of natural gas, establishing energy infrastructure and maintaining complex logistics chains. 

Gen2 Energy will contribute with its knowledge and experience in production and safe handling of green hydrogen. Together, the parties will also explore the use of carbon free propulsion systems for vessels and the potential for injection of hydrogen into the natural gas transmission grids. 

Gen2 Energy CEO Jonas Meyer said he was pleased to sign the co-operation agreement with Höegh LNG. 

“The company has close to 100 years’ experience from the maritime industry, including handling and transport of natural gas, which is valuable when developing a new market for seaborne transport of hydrogen,” he said. 

“The agreement brings us one step closer to the goal of providing European energy markets with fossil-free hydrogen on a large scale, and we are extremely pleased to engage in this important collaboration with such an experienced actor. It also fits very well with Gen2 Energy’s announcement with Port of Cromarty Firth last week, which to my knowledge was the first ever export agreement for green hydrogen from Norway”. 

Höegh LNG president and CEO Sveinung J S Støhle said, “We are delighted to be both shareholder and a partner with Gen2Energy on seaborne hydrogen transportation. It is a critical element of the hydrogen value chain and one that Höegh LNG is uniquely positioned to serve. Gen2Energy has the potential to be one of the first large scale suppliers of green hydrogen to market with Höegh LNG taking a leading infrastructure role.”