Norway's Hoegh LNG Holdings is shooting for first place in shipping's hydrogen race through a new cooperation deal with compatriot Gen2 Energy.
The company said the two sides are aiming to develop a logistics chain for the green fuel at sea. Hoegh LNG has bought an unspecified stake in its partner.
The companies are targeting "a first-mover" advantage in hydrogen shipping, they said.
The plan is to explore the use of carbon-free propulsion systems for vessels and the potential for injection of hydrogen into natural gas transmission grids.
Gen2 is aiming to build several large-scale production facilities for green hydrogen located in Norway and elsewhere in northern Europe, as well as a distribution network.
Costs to be cut
"Green hydrogen can be produced at cost competitive levels, but several of the optimal production sites are at remote locations, making transport by land expensive," Hoegh LNG said.
By transporting hydrogen at sea, the two parties aim to significantly reduce both transport cost and carbon dioxide emissions.
Hoegh LNG will bring its extensive experience of shipping and importing natural gas, establishing energy infrastructure and maintaining complex logistics chains.
Jonas Meyer, chief executive at Gen2, said the deal moves the company one step closer to the goal of providing European energy markets with fossil-free hydrogen on a large scale.
Earlier in June, Gen2 announced an export deal with the Port of Cromarty Firth in the UK, the first involving green hydrogen from Norway.
Hoegh LNG CEO Sveinung Stohle said sea transport is a "critical element of the hydrogen value chain and one that Hoegh LNG is uniquely positioned to serve".
Leading role for Hoegh LNG
"Gen2Energy has the potential to be one of the first large scale suppliers of green hydrogen to market with Hoegh LNG taking a leading infrastructure role," he added.
In November, Stohle detailed his ambition for a shift into ammonia and hydrogen shipping.
He said the floating storage and regasification unit company had received an unspecified grant from Innovation Norway to partially fund ongoing work on developing floating solutions for carbon-free fuels.
The CEO added that there are opportunities to use existing vessels to store ammonia in tanks and then turn this into hydrogen.
Bond funds raised
Hoegh LNG has also successfully completed a NOK 330m ($40m) tap issue under the company's existing senior unsecured bonds maturing in 2025.
The deal was priced at 97% of par value and the total outstanding amount is now NOK 1.3bn, the full amount possible, according to Fearnley Securities.
Hoegh LNG delisted in Oslo on 28 May.
Parent Leif Hoegh & Co took it private in a deal with US investment bank Morgan Stanley that valued the shipowner at around $214m.
