French oil and gas services giant Technip Energies has teamed up with Belgian group John Cockerill to establish a hydrogen green solutions joint-venture named Rely. The new firm will focus on offering end-to-end solutions for decarbonising hard-to-abate and hard-to-electrify industries.
This will be done using green hydrogen, which is generated through an electrolysis process fuelled by renewable energy, and Power-to-X technology, which converts surplus electricity into storable substances or fuels such as hydrogen or methane. Rely aims to achieve revenues of more than €1bn by 2030, with Technip Energies owning a 60% stake and John Cockerill 40%.
The launch of Rely comes as Western countries impose sanctions on Moscow's energy exports in response to Russia's invasion of Ukraine. This has created opportunities for energy service firms, with increased investments in liquefied natural gas (LNG) and low-carbon energy sources.
According to Technip Energies, the global need to combat climate change also presents significant growth opportunities for green hydrogen and Power-to-X technologies.
Technip Energies reported stronger-than-expected first-quarter earnings, citing strong performance in its segments and an order intake benefiting from important awards in ethylene, carbon capture and sustainable fuels. The group posted adjusted recurring earnings before interest and taxes (EBIT) of €107.3m for the March quarter, exceeding analysts' forecasts of €101.4m.
Technip Energies is an engineering and technology specialist for the energy industry, and its Project Delivery segment is expected to see a significant improvement in order intake during 2023 and 2024, supported by a robust LNG and customer spending cycle.
