Everfuel signs Letter of Intent with German industrial offtaker for initial supply of 10,000 tons of green hydrogen per year
Herning, Denmark, 8 May 2024 - Everfuel A/S is pleased to announce the signing of a Letter of Intent (LoI) with a large industrial offtaker in Germany for the supply of up to 10,000 tons of green hydrogen per year from 2028.
The undisclosed customers’ initial demand is expected to match the hydrogen output from an operationally optimised 100 MW electrolyser, aligning with Everfuels' strategy of developing standardised, scalable electrolyser modules tailored to demand. The customer expects to increase consumption of green hydrogen, classified as Renewable fuels of non-biological origin (RFNBO), over time in accordance with its plans for decarbonising industrial processes.
“This is a validation of Everfuel’s focused strategy for delivering green hydrogen at scale to industrial customers and I would like to acknowledge our partner’s ambition to pioneer the hydrogen transition in Germany. We share a strong commitment to enabling material carbon emission reductions and creating a platform for mutual long-term value creation,” said Jacob Krogsgaard, founder and CEO of Everfuel.
The German partner understands Denmark’s significant potential for green hydrogen export and recognises Everfuel’s unique strategic position and plans for establishing hydrogen production capacities in the attractive Danish power zone DK1.
Everfuel may supply the RFNBO hydrogen from project Sif or other future electrolyser projects under development. The LoI is the first step towards a final commercial agreement between the parties, which is conditional upon several factors, including the establishment of hydrogen pipeline infrastructure between Denmark and Germany connecting Everfuel’s production facility and the customer.
“On 5 April 2024 the Danish government announced that it is willing to take majority of the investment risk of the Danish hydrogen backbone if market participants provide sufficient commitment. Today’s agreement is a cross-border confirmation of the willingness from Everfuel and partner to show such a commitment. The 5 May 2024 Everfuel responded to Energinet’s (Danish TSO) market exploration deadline for backbone capacity reservation. Everfuels indication of capacity reservation included a significant commitment, which also includes the German industrial offtaker, and is showing Everfuel dedication to make large scale green hydrogen production and distribution happen,” said Jacob Krogsgaard, founder and CEO of Everfuel.
“Developers like Everfuel work hard to mature portfolios of scalable projects to ensure production capacity and redundancy in our operations to verify industry commitments. It is crucial for Everfuel and our partners to understand the timing and cost associated with using the upcoming infrastructure. We look forward to continuing the dialogue with Energinet in the process to firm backbone capacity commitments scheduled for second half of 2025,” Jacob continued.
RFNBO is considered a critical enabler for decarbonising industry and transport sectors in Germany, in line with EU’s Renewable Energy Directive (RED II) targets.
For further information, please contact:
Jacob Krogsgaard, CEO, Everfuel, +45 2871 8945
Mads T. Mortensen, Director of Investor Relations & Communication, Everfuel, [email protected], +45 7730 4727
About Everfuel | www.everfuel.com
Everfuel is making green hydrogen for zero emission industry and mobility commercially available across Europe, offering competitive all-inclusive hydrogen supply and fuelling solutions. We own and operate green hydrogen infrastructure and partner with industry and vehicle OEMs to connect the entire hydrogen value chain and seamlessly provide hydrogen fuel to enterprise customers under long-term contracts. Green hydrogen is a 100% clean energy carrier made from renewable solar and wind power and key to decarbonising industry and transportation in Europe. We are an ambitious, rapidly growing company, headquartered in Herning, Denmark, and with activities in Denmark, Sweden, The Netherlands and Germany, and a plan to grow across Europe. Everfuel is listed on Euronext Growth in Oslo under EFUEL.