Swiss trader Trafigura has struck a deal with compatriot H2 Energy Holding to take over a green hydrogen joint venture.
The giant commodities group will become the majority owner in H2 Energy Europe, which is planning to launch production projects in Denmark and Wales.
Trafigura said its development plans are “ramping up”.
The founders of H2 Energy Holding will retain a minority ownership and continue to contribute their extensive knowledge and expertise, the group added.
In 2020, Trafigura invested $62m in H2 Energy Holding to develop hydrogen fuel cells.
This move also involved setting up H2 Energy Europe as a 50:50 joint venture to build hydrogen eco-systems in Europe.
Trafigura has retained its support for and minority equity interest in H2 Energy Holding, which will continue to focus on developing green hydrogen eco-systems and green hydrogen technologies.
H2 Energy Europe plans to build a 1 GW green hydrogen facility in Esbjerg, Denmark, and front-end engineering design (FEED) work is being carried out.
A final investment decision is expected in 2024.
In south Wales, H2 Energy Europe has recently submitted a formal planning application to construct a 20 MW green hydrogen production facility within the port of Milford Haven.
Government funding sought
Welsh company InSite Technical Services is carrying out a FEED study.
The project has reached the final negotiation stage for funding under the UK government’s hydrogen business model and net zero hydrogen fund.
Subject to government support, the facility should be commissioned within two years, using domestic renewable energy to produce green hydrogen for shipping and road transport.
It will also produce hydrogen as a chemical feedstock and to provide power for industrial use across the south Wales industrial cluster.
Founded in 2014, H2 Energy Holding is based in Zurich.
Founder Rolf Huber said: “This is a welcome development that strategically positions both companies for future growth and investment.”
Julien Rolland, head of strategic projects and investments for Trafigura, said: “Today’s announcement allows H2 Energy Europe to focus on developing large-scale green hydrogen projects and distribution networks across Europe, while H2 Energy Holding will focus on its core business and technology development.
“Trafigura and H2 Energy Holding will continue to cooperate closely and benefit from each partner’s respective expertise.”
