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Norway’s Hydro announced Tuesday that a memorandum had been signed by the parties.
Hydro Havrand will become a joint venture between Shell and Hydro to produce and sell hydrogen. It will operate in hubs that are centered on Hydro and Shell businesses and have strong potential to increase production for their customers in transport and heavy industry.
The initial goal is to locate opportunities for renewable hydrogen production from European sites. Hydro stated that the intention was to grow into other regions and places over time.
You can make hydrogen in many different ways. Electrolysis is one method of producing hydrogen. It involves the use of an electric current to split water into hydrogen and oxygen.
This process is called green hydrogen if the electricity comes from renewable sources such as solar or wind.
Oct. saw the appointment of CEO Siemens EnergyHe described the challenges facing green hydrogen and spoke about them. telling CNBC that there was “no commercial case” for it at this moment in time.
Christian Bruch, during an interview at CNBC’s Sustainable Future Forum highlighted several areas where green hydrogen needs to grow.
Bruch spoke to CNBC’s Steve Sedgwick and stated that “We must define boundaries which make this technology, these cases, commercially viable.”
And we require an environment of inexpensive electricity. In this respect, there is plenty of renewable energy. He argued that this was still not the case.
—CNBC’s Sam Meredith and Chloe Taylor contributed to this article.