Trafigura to become majority owner of H2 Energy Europe

Outlook & Strategy

October 10, 2023, by Aida Čučuk

Swiss commodity trading group Trafigura has made an agreement with compatriot H2 Energy Holding founders to increase its shareholding in H2 Energy Europe to become majority owners, with the founders retaining minority ownership.

In addition, Trafigura said the company retains its support for and minority equity interest in H2 Energy Holding, which will continue to focus on developing green hydrogen eco-systems and green hydrogen technologies.

Rolf Huber, Founder of H2 Energy, remarked: “This is a welcome development that strategically positions both companies for future growth and investment. As we move forward, our primary objective is to fortify our green hydrogen ecosystem, focusing on infrastructural engineering projects, the development of fuel cell applications and the development and commercialization of key hydrogen equipment. Collaborating closely with Trafigura, we aim to leverage each other’s expertise to advance our shared goal of making green hydrogen a cornerstone of the energy system.”

Julien Rolland, Head of Strategic Projects and Investments for Trafigura, said: “Today’s announcement allows H2 Energy Europe to focus on developing large-scale green hydrogen projects and distribution networks across Europe, while H2 Energy Holding will focus on its core business and technology development. Trafigura and H2 Energy Holding will continue to cooperate closely and benefit from each partner’s respective expertise.”

To note, the announcement comes as development plans ramp up for large-scale green hydrogen production projects and mid- and downstream hydrogen supply and distribution infrastructure in Europe.

According to Trafigura, plans to build a 1 GW green hydrogen facility in Esbjerg, Denmark, are progressing, with COWI commissioned in June 2023 to conduct the front-end engineering design (FEED) for the production plant, and a final investment decision (FID) expected in 2024.

In South Wales, Trafigura said that H2 Energy Europe submitted a formal planning application to construct a 20 MW green hydrogen production facility within the port of Milford Haven in South Wales, with local company InSite Technical Services currently undertaking the FEED study.

This project has reached the final negotiation stage for funding under the UK Government’s ‘Hydrogen Business Model’ and ‘Net Zero Hydrogen Fund: Electrolytic Allocation Round 2022,’ with final projects expected to be announced this year.

Subject to government support, the facility is expected to be commissioned within two years, using domestic renewable energy to produce green hydrogen for shipping and road transport, as a chemical feedstock and to provide power for industrial use across the South Wales Industrial Cluster.