Everfuel said Wednesday it has signed a letter of intent (LOI) with an undisclosed “large” German industrial offtaker for the supply of up to 10,000 tonnes/year of green hydrogen.

The German customer expects to increase its consumption of green hydrogen –classified as renewable fuels of non-biological origin (RFNBO) – in line with its plans to decarbonise industrial processes, Everfuel says. The offtaker’s initial demand is anticipated to match the hydrogen output from a 100-megawatt electrolyser.

The Danish green hydrogen company is likely to supply the RFNBO hydrogen from project Sif or other future electrolyser projects under development, starting from 2028. Announced last year, project Sif is Everfuel’s third site in Denmark, with the potential to house over 1 gigawatt of electrolyser capacity. 

“This is a validation of Everfuel’s focused strategy for delivering green hydrogen at scale to industrial customers and I would like to acknowledge our partner’s ambition to pioneer the hydrogen transition in Germany,” says Jacob Krogsgaard, ceo of Everfuel. “We share a strong commitment to enabling material carbon emission reductions and creating a platform for mutual long-term value creation.”

The LOI marks the first step towards a final commercial agreement between the two companies. Yet, this is subject to conditions including the establishment of hydrogen pipeline infrastructure between Denmark and Germany, which would connect Everfuel’s production facility with the offtaker.

Last week, Copenhagen Infrastructure Partners (CIP) signed an agreement with Uniper to deliver up to 140,000 t/y of green hydrogen from Denmark to customers in Germany. This project will also connect to the German hydrogen backbone through a new hydrogen pipeline set to be developed by the Danish transmission system operator Energinet and Gasunie Deutschland Transport Services. The pipeline is expected to come online in 2028.

“On 5 April 2024 the Danish government announced that it is willing to take majority of the investment risk of the Danish hydrogen backbone if market participants provide sufficient commitment,” notes Everfuel ceo. “Today’s agreement is a cross-border confirmation of the willingness from Everfuel and partner to show such a commitment.”