AVANGRID and Sempra Infrastructure to jointly develop Green Hydrogen, Ammonia projects
Energy services firm AVANGRID, a member of the Iberdrola Group, has signed a heads of agreement with Sempra Infrastructure, a subsidiary of Sempra, for the joint development of green hydrogen and ammonia projects in the U.S.
Hydrogen does not emit carbon dioxide when converted to energy, but it is not found naturally or mined. It can separated from water via electrolysis, and from methane gas via steam reforming.
Hydrogen is only green if separated by electrolyzers powered by carbon-free energy resources such as hydro, solar, wind or nuclear. Ammonia can store hydrogen as it contains four H2 atoms and one nitrogen atom, but no carbon..
“Clean hydrogen and ammonia can be effective decarbonization solutions for various sectors of the U.S. and global markets," Justin Bird, CEO of Sempra Infrastructure, said. "We are excited to work together with AVANGRID to develop large-scale green hydrogen and ammonia projects to advance hydrogen's role in the global energy transition.”
He also said that significant infrastructure will have to be developed for hydrogen's potential to become a reality.
AVANGRID will bring its renewables development experience to the joint development project that will complement Sempra Infrastructure's project development and commercial expertise in clean power, LNG and net-zero solutions.
"The U.S. is facing unprecedented challenges and opportunities to develop competitive solutions that meet its growing energy needs, while also aiming to transition to a cleaner and more sustainable energy future," said Pedro Azagra, CEO of AVANGRID. "AVANGRID is very proud to innovate and develop green hydrogen and ammonia projects in collaboration with Sempra Infrastructure, which are crucial to decarbonize the industry and will help the country reach its ambitious clean energy goals."
Sempra Infrastructure is owned by San Diego-based utility holding company Sempra Energy. Avangrid owns several utilities including Central Maine Power, United Illuminating and others. Spain's Iberdrola holds a controlling stake in Avangrid.