The agreement with the undisclosed partner ensures oxygen made from electrolysis will be delivered, increasing the utilisation of the HySnergy facility in Fredericia, Denmark.
Everfuel’s contract is conditional on a final investment decision by the partner for the construction of a process facility adjacent to HySnergy which will use the oxygen and Everfuel’s decision to progress HySnergy 2.0.
The contract agreement includes payment for a capacity reservation of oxygen and a recurring payment for the oxygen supply, with a minimum revenue of €1m per year once the agreement is fully implemented. .
Jacob Krogsgaard, CEO of Everfuel, said, “Previously we have announced the contract for hydrogen supply to the Crossbridge Energy refinery subject to the now granted DKK 246.3m in Important Projects of Common European Interest (IPCEI) funding for HySnergy 2.0.
“With an agreement for oxygen offtake on HySnergy 2.0, we will have established a leading industrial-scale Power-to-X (PtX) facility.”
Everfuel revealed in December it received DKK 246.3m (€35.2m) of funding from the Danish Government, under the IPCEI programme, for its 300MW green hydrogen project.
It is planned to be used to develop the second phase of HySnergy, Everfuel planning to establish a 300MW electrolyser and PtX plant facility adjacent to a refinery.
Read more: Everfuel has DKK 246.3m in IPCEI funding approved for 300MW green hydrogen project
Also, the Danish company announced the production of the first hydrogen from its HySnergy project in Frederica.
The company said the initial production volumes from the 20MW electrolyser represent as a “major milestone” in the journey towards the commercialisation of clean hydrogen as an energy source for industry and mobility.
Read more: Everfuel announces first hydrogen produced from HySnergy project