Sempra and Iberdrola units to jointly pursue US hydrogen and ammonia projects

October 14, 2022, by Ajsa Habibic

Sempra Infrastructure has signed heads of agreement (HOA) with Avangrid, a member of the Iberdrola Group, for the potential joint development of US green hydrogen and ammonia projects powered by renewable sources.

Sempra's Port Arthur LNG export project; illustration only. Courtesy of Sempra

Under the agreement, the companies will identify, appraise, and potentially develop large-scale green hydrogen projects to help meet the energy and decarbonisation needs of both US and international customers.

According to the partners, Avangrid’s background in renewable development complements Sempra Infrastructure’s project development and commercial expertise across clean power, energy networks and LNG and net-zero solutions.

“The US 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 decarbonise the industry and will help the country reach its ambitious clean energy goals.”

“Clean hydrogen and ammonia can be effective decarbonisation solutions for various sectors of the US and global markets. 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“, added Justin Bird, CEO of Sempra Infrastructure.

“Significant infrastructure will be needed for hydrogen’s potential to become a reality and Sempra Infrastructure’s combined platform is well-positioned to support the deployment of these new energy solutions.”

Sempra Infrastructure noted that it is currently developing multiple energy transition projects in North America, including LNG export projects to serve customers in both the Atlantic and Pacific Basins, as well as new opportunities in renewable energy, carbon capture and sequestration, and other pathways to produce clean hydrogen and ammonia leveraging the resources available in different regions.