In a groundbreaking move towards decarbonization, TotalEnergies and Air Products have entered into a 15-year agreement for the annual supply of 70,000 metric tons of green hydrogen in Europe, commencing in 2030. This landmark deal follows TotalEnergies' call for tenders for the supply of 500,000 metric tons per year of green hydrogen to decarbonize its European refineries, marking a significant step towards achieving the company's ambitious sustainability goals.
Under the terms of the agreement, Air Products, a global leader in hydrogen supply, will deliver green hydrogen to TotalEnergies' Northern European refineries' doorstep from its extensive global supply network. The use of green hydrogen is expected to avoid approximately 700,000 metric tons of CO₂ emissions each year, contributing to TotalEnergies' objective of reducing net greenhouse gas emissions from its operated oil and gas operations (Scope 1+2) by 40% by 2030 compared to 2015 levels.
Air Products has demonstrated its commitment to the energy transition by investing more than $15 billion in real, large-scale projects and launching several low-carbon hydrogen initiatives worldwide. This positions the company as a leading and reliable supplier of green hydrogen, making it an ideal partner for TotalEnergies in its decarbonization efforts.
Patrick Pouyanné, Chairman and CEO of TotalEnergies, praised the partnership, stating, "This deal with Air Products, the first signed following the call for tenders launched last year, is a steppingstone towards our goal of decarbonizing the hydrogen used in TotalEnergies' refineries in Northern Europe by the end of the decade." He further emphasized the company's capacity to pioneer the energy transition and contribute to the emergence of a green hydrogen industry by offering long-term contracts with its six refineries and two biorefineries in Europe.
Seifi Ghasemi, Chairman, President, and CEO of Air Products, expressed his admiration for Patrick Pouyanné's vision and courage in acting as a first-mover towards creating a cleaner future for the world. Ghasemi noted that Air Products started producing clean hydrogen seven years ago, believing that if it was made available at a commercial scale, the demand would follow. "This contract validates our long-term strategy. Clearly, the demand is here, and it will grow significantly as we move forward, playing an essential role in decarbonizing heavy industry and other sectors," he added.
In addition to the green hydrogen supply agreement, TotalEnergies and Air Products have signed a memorandum of understanding for the supply of renewable power. This includes the signing of a first Power Purchase Agreement for 150 MW produced at a solar project in Texas. The parties also plan to explore further PPA opportunities in the UK, Poland, and France. This agreement strengthens the partnership between TotalEnergies and Air Products and contributes to Air Products' decarbonization roadmap while aligning with TotalEnergies' integrated electricity strategy along the value chain.
TotalEnergies' commitment to decarbonizing its European refineries is evident in its efforts to reduce the carbon footprint of producing, converting, and supplying energy to its customers. The company has identified the use of green or low-carbon hydrogen as a key lever in reducing its CO₂ emissions by around five million metric tons per year by 2030. To fully decarbonize the hydrogen used in its European refineries, TotalEnergies launched a call for tenders in September 2023 for the supply of 500,000 metric tons per year of green hydrogen.
EPA: TTE
Current Price: €58.45
Change: +1.2%
Based on the technical analysis model, TotalEnergies' stock is currently in an uptrend. The share price has been consistently trading above its moving averages, indicating a strong bullish sentiment. The MACD (Moving Average Convergence Divergence) indicator shows a positive crossover, further confirming the upward momentum. The stock has also broken through key resistance levels, suggesting a potential for further price appreciation. However, investors should monitor the stock closely for any signs of a trend reversal or a breach of support levels. The agreement between TotalEnergies and Air Products for the supply of green hydrogen is expected to have a positive impact on TotalEnergies' stock price in the long term.
