UK contractor Wood and Norwegian clean energy player NEL Hydrogen have teamed up to target green hydrogen projects around the globe.
The three-year framework agreement, revealed on Friday, will see traditional oil and gas services giant Wood and Oslo-headquartered NEL collaborate “to develop and execute large-scale, complex green renewable hydrogen projects in select regions across the world”, the latter said.
Aberdeen-based Wood said the pact is aligned with its “ambition to unlock sustainable solutions to global energy challenges” and would allow it to “play a leading role in the transition towards an integrated, lower-carbon future”.
NEL chief financial officer Kjell Christian Bjornsen told Upstream: “Projects involving hydrogen are becoming larger and larger.” He added: “This agreement allows us to deliver the projects in a better way.”
Wood will, under the agreement, lend its expertise in executing large oil and gas and other projects.
Although Bjornsen said NEL is also speaking with other engineering, procurement and construction players — which he did not identify — he said no similar deals have as yet been struck, stressing that the Wood pact “is a very important agreement for us”.
Bjornsen did not say what size of projects the two could pair together on, saying that it depends on future project awards, while also not disclosing which regions the two will concentrate on.
Upstream has approached Wood for comment.
Craig Shanaghey, president of Wood’s operations across Europe, Middle East, and Africa, said: “If the world is going to realise the potential of hydrogen as a sustainable, clean, and plentiful energy vector, a vast increase in production is necessary.”
NEL chief executive Jon Andre Lokke added: “As green hydrogen projects are growing in size and complexity, it is crucial for our success to have strong partners to strengthen our project management and execution capabilities.
“This is a long-term commitment, and we look forward to working together to further strengthen our competitiveness through leveraging our experience and competence.”
Founded in 1927, Oslo-listed NEL describes itself as a leader in alkaline and proton exchange membrane water electrolysis, with more than 3500 electrolysers installed around the globe.