Nationalized German gas importer and trader, SEFE, has expressed its interest in venturing into clean hydrogen production as part of its commitment to spearhead the transition towards green energy solutions. The announcement was made by SEFE's CEO, Egbert Laege, during the Handelsblatt Gas 2023 conference.
Laege revealed that the company is closely evaluating opportunities within the hydrogen production sector. This strategic move aligns with the global push for clean hydrogen, generated through electrolysis of renewable power sources, to replace conventional fossil fuels. Notably, the absence of a standardized global market mechanism for green hydrogen has prompted SEFE to consider forming alliances with producers, akin to past collaborations that fostered the growth of the liquefied natural gas (LNG) market.
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“We will seek ties to cooperate with producers and take shares in hydrogen projects,” stated Laege, emphasizing the company's intention to actively participate in the emerging hydrogen economy.
Privatization objectives also play a role in SEFE's interest in hydrogen. The company, overseen by the Economy Ministry, is obligated to divest itself of state participations under European Union regulations stemming from a trusteeship agreement enacted last year. This arrangement was put in place to rescue SEFE from financial turmoil caused by a decrease in Russian gas receipts and a decline in market positions.
Laege clarified, “When the state pulls out, we will need a more solid asset base, which is another reason for looking at investments, and those would be made in future energy technologies…where hydrogen is the leading one.”
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Furthermore, SEFE has welcomed plans by Gascade, a subsidiary of WIGA, for the development of green hydrogen pipelines. This prospect has intensified SEFE's interest in potentially increasing its stake in Gascade pipelines. However, Laege emphasized the importance of adhering to ethical business practices, stating, “Having received state money, we would not be allowed to play out an unfair advantage there.”
SEFE's foray into hydrogen production signifies a significant step in Germany's pursuit of sustainable and environmentally friendly energy alternatives. As the global energy landscape continues to evolve, SEFE's strategic decisions are indicative of a broader industry shift towards cleaner and more sustainable energy sources.
