Green hydrogen developer Hy2gen has entered into a memorandum of understanding (MoU) with offshore wind energy developer Ocean Connect Energy (OCE) to explore the potential for producing renewable hydrogen from offshore wind power.
This agreement formalizes a collaboration between the two firms to pinpoint and develop ideal locations for Hy2gen's renewable fuel production, utilizing the gigawatt-scale offshore wind energy projects that OCE is developing both in the USA and globally.
Over the next 10 months, Hy2gen USA and OCE will work together to identify high-capacity offshore wind energy sites. These areas may currently face challenges such as constrained grid transmission or low electricity demand, which could hinder project development.
David White, president of Hy2gen USA, explained the potential benefits of this initiative. “Where renewable hydrogen production can be built near the point of interconnect from offshore wind energy generation, we have the potential to create predictable and lasting demand for the energy. This makes the need for new grid transmission less urgent and the need for infrastructure investment less substantial, while accelerating wind energy project execution.”
Kevin Banister, CEO of Ocean Connect Energy, highlighted the transformative potential of renewable hydrogen. “Renewable hydrogen can change the paradigm of where offshore wind is developed,” he said.
This research effort aligns with Hy2gen's strategy to support the United States' clean hydrogen regulatory framework established by the 2022 Inflation Reduction Act, along with forthcoming guidelines from the US Department of Treasury, as well as the regulatory framework in the European Union.
Hy2gen is dedicated to producing 100% renewable fuels that meet the highest industry sustainability standards. The company is focused on addressing the three pillars of temporality, additionality, and regionality, which are essential for renewable fuel classification. Integrating the development of offshore wind energy projects with power-to-X projects is seen as a solution to these challenges.
Banister emphasized the advantages of offshore wind for renewable hydrogen production. “With its high capacity factor and ability to be built at scale, offshore wind can deliver an excellent energy profile to match the electricity demand of the next key element of the energy transition: renewable hydrogen production. Done right, pairing the two can result in efficient project development and capital allocation.”
