Norwegian Gen2 Energy and Germany’s Securing Energy for Europe (SEFE), via its subsidiary WINGAS, have signed a transaction term sheet for the delivery of green hydrogen.
Gen2 Energy said the sheet defines the terms and conditions for a final sales and purchasing agreement and represents a major step to realize the import of green hydrogen from Norway to Germany.
Moreover, the term sheet is said to represent progress on Gen2 Energy’s path to delivering green hydrogen from their first production plant in Mosjøen, Norway, and provides the company with credible evidence of market interest and commitment, a vital element towards a final investment decision (FID) for the hydrogen plant and related supply chain.
Frédéric Barnaud, CCO of SEFE, stated: “Together with our Norwegian partner we have made significant strides in aligning our strategies and conditions for the successful delivery of green hydrogen in the near future. The signing of the term sheet empowers SEFE to enter more advanced discussions with our valued end-users. This milestone paves the way for innovative and environmentally friendly solutions to meet the energy demands of the German market.”
Jonas Meyer, CEO of Gen2 Energy, commented: “We are excited about what we have achieved with SEFE since the MoU was signed some months ago. This term sheet not only reinforces our commitment to providing green hydrogen but also represents a key step towards securing the necessary investments to make our project a reality.”
To remind, in December 2022, a Memorandum of Understanding (MoU) was signed between SEFE and Gen2 Energy to pursue an offtake agreement for green hydrogen, with companies announcing it in January 2023.
At the time, the companies said the compressed hydrogen would be delivered in specially designed containers and transported by dedicated ship from Gen2 Energy’s production sites along the Norwegian coastline to port(s) in Germany, Netherlands and/or UK.