Everfuel Inks Deal with German Industrial Partner for 10,000 Tons of Green Hydrogen Annually

Everfuel A/S is delighted to announce the execution of a Letter of Intent (LoI) with a significant industrial consumer in Germany for the provision of up to 10,000 tons of green hydrogen annually starting in 2028.

The initial demand from undisclosed customers is anticipated to align with the hydrogen production from a 100 MW electrolyser optimized for operations, consistent with Everfuel's strategy of developing standardized and scalable electrolyser modules customized to meet demand. Over time, the customer intends to increase its utilization of green hydrogen, categorized as Renewable Fuels of Non-Biological Origin (RFNBO), in line with its objectives for decarbonizing industrial processes.

"This underscores Everfuel's strategic focus on providing large-scale green hydrogen solutions to industrial clients, and I commend our partner for their leadership in spearheading the hydrogen transition in Germany. We both share a steadfast dedication to facilitating significant carbon emission reductions and establishing a foundation for long-term mutual value creation," remarked Jacob Krogsgaard, Everfuel's founder and CEO.

The German partner acknowledges the substantial potential for green hydrogen export from Denmark and acknowledges Everfuel's distinctive strategic position and initiatives to establish hydrogen production capabilities in the appealing Danish power zone DK1.

Everfuel has the potential to provide RFNBO hydrogen from Project Sif or other forthcoming electrolyser projects currently in progress. The LoI marks the initial phase towards reaching a definitive commercial agreement between the parties, contingent on various factors, including the development of hydrogen pipeline infrastructure linking Denmark and Germany to connect Everfuel's production facility with the customer.

“On April 5, 2024, the Danish government announced its willingness to assume the majority of the investment risk associated with the Danish hydrogen backbone, provided that market participants demonstrate sufficient commitment. Today’s agreement serves as a cross-border affirmation of Everfuel and its partner's commitment to fulfilling this requirement. Everfuel provided a response to Energinet's (Danish TSO) market exploration deadline for backbone capacity reservation on May 5, 2024. Everfuel's indication of capacity reservation included a substantial commitment, which also involves the German industrial offtaker, demonstrating Everfuel's dedication to realizing large-scale green hydrogen production and distribution,” stated Jacob Krogsgaard, founder and CEO of Everfuel.

“Companies like Everfuel dedicate significant effort to advancing portfolios of scalable projects, aiming to establish production capacity and redundancy within our operations to confirm industry commitments. Understanding the timing and costs associated with utilizing forthcoming infrastructure is vital for Everfuel and our partners. We anticipate ongoing discussions with Energinet as we progress towards firm backbone capacity commitments, scheduled for the second half of 2025,” Jacob added.

RFNBO is recognized as a crucial facilitator for decarbonizing the industrial and transportation sectors in Germany, aligning with the targets set by the EU's Renewable Energy Directive (RED II).