Cepsa and ACE Terminal Join Forces to Create Green Hydrogen Supply Chain From Spain to the Netherlands
WEBWIRE – Monday, February 20, 2023
This alliance makes the Green Hydrogen Corridor a tangible reality and increases the international potential of the Andalusian Green Hydrogen Valley
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- Cepsa to supply green ammonia to ACE Terminal in the Port of Rotterdam for conversion into green hydrogen for multiple industries in northern Europe or direct use in shipping
- The MoU with Cepsa is the first of agreements ACE signs for green hydrogen and ammonia imports to create Europes largest green ammonia import terminal
- The agreement strengthens the green hydrogen corridor between the north and south of Europe and represents a significant milestone in the European strategy to decarbonize and develop renewable hydrogen and sustainable fuels
Cepsa and ACE Terminal have signed a Memorandum of Understanding (MoU) by which the Spanish energy company will supply green ammonia to the planned import terminal in the port of Rotterdam, for end use applications in the industry after conversion of the ammonia back into hydrogen, or for direct end use in the shipping and other industries in Northwest Europe.
Cepsa is developing 2GW of green hydrogen at its two Energy Parks in Andalusia, southern Spain, as part of its 2030 Positive Motion strategy to become a leader in sustainable mobility and the production of renewable hydrogen and advanced biofuels and a benchmark in the energy transition. The two hydrogen plants, with a 3 billion euro investment, will form part of the Andalusian Green Hydrogen Valley, the largest green hydrogen hub in Europe, for which Cepsa has recently signed a number of partnership agreements across the hydrogen value chain.
On the import side, Gasunie, HES International and Vopak have partnered to develop ACE Terminal as an entry point to the Netherlands for ammonia as a carrier for green hydrogen as well as a sustainable feedstock. The open access terminal will be located in the port of Rotterdam, a very important port for Northwest Europe from an energy point of view. With the planned reuse of assets and infrastructure, ACE Terminal is a project with a short time to market. The MoU with Cepsa is the first of agreements aimed between additional clients and the ACE open access hub terminal for green hydrogen and ammonia imports.
The MoU between Cepsa and ACE Terminal entails a cooperation intended to lead to a binding commercial agreement to facilitate the oversea transport of green ammonia, to redistribute the green ammonia to end markets in the hinterland, and to process the green ammonia into green hydrogen ready for use by end customers in Northwest Europe. The location of ACE Terminal in the port of Rotterdam offers direct connection to Rotterdams industry and the planned national hydrogen network, and has an excellent connection to the infrastructure into Northwest Europe.
By importing green energy that can be produced competitively by Cepsa in southern Spain thanks to conditions such as ample sun, wind and land, a solid electricity grid and access to high traffic ports, the alliance helps to decarbonize industry and transport in the North and ensure energy independence, security and affordability in Europe.
The alliance with ACE Terminal reinforces Cepsas agreement with the Port of Rotterdam to export hydrogen produced at its San Roque Energy Park near the Bay of Algeciras through hydrogen carriers such as ammonia, establishing the first green hydrogen corridor between southern and northern Europe and ensuring a green hydrogen supply chain between two of Europes main ports, Rotterdam and Algeciras.
Cepsa aims to start the first green hydrogen exports from Spain in 2027, timing that is well aligned with the ACE Terminal project timeline.
Rob Jetten, Minister for Climate and Energy, who was present at the signing of the MoU in Madrid, said: This MoU between Cepsa and ACE Terminal is a great example of the type of collaborations that are needed and we want to stimulate with the new Memorandum of Understanding in the field of renewable hydrogen between Spain and the Netherlands. It constitutes a significant milestone for the European Hydrogen Strategy in developing hydrogen corridors between south and north Europe. This will enable us to reduce reliance on fossil fuels and to achieve the Dutch decarbonization and climate goals.
This alliance makes the Green Hydrogen Corridor a tangible reality and increases the international potential of the Andalusian Green Hydrogen Valley, allowing green hydrogen produced by Cepsa in southern Spain to be used for industry and shipping in northern Europe. Partnerships like these are examples of the collaboration needed across Europe to ensure energy security without jeopardising climate targets, and the important role that Cepsa, and Spain, can and must play in this journey.
Maarten Wetselaar – Cepsa CEO
Egbert Vrijen, project director ACE Terminal, said: We are delighted that Cepsa has stepped forward and has chosen ACE Terminal. We hope that in addition to Cepsa, more parties will join our open access ammonia/hydrogen import terminal in the port of Rotterdam.
Rotterdam is the most important energy port in Europe, handling 13% of European energy demand, while the Port of Algeciras is first in Spain, fourth in Europe, and an important trade route between Europe and Asia. The future demand for green hydrogen in Northwest Europe exceeds the capacity that can be produced locally from sustainable sources, thus the need to import green hydrogen on a large scale.
Red Hook Container Terminals LLC announced today that it has begun regular commercial operation of ten (10) BYD Motors heavy-duty zero-emission battery electric yard tractors at its container terminal in Port Newark, New Jersey. The Red Hook fleet represents the single largest deployment of zero-emission battery electric trucks in the eastern United States and the first at a Port Authority of New York and New Jersey marine terminal. The heavy-duty zero emission battery electric yard tractors are being used to move cargo containers at the Red Hook Marine Terminal in Port Newark and are also being used for making runs to the other terminals at Port Newark and Port Elizabeth and runs to the Millennium Marine Rail yard. Red Hook operates the cross-harbor barging operation that eliminates tens of thousands of truck trips per year off the roads of New Jersey and New York and so the deployment represents the most recent example of Red Hook’s continuing leading role in the fields of port-related environmental stewardship and global sustainability. The Red Hook zero-emission battery electric truck fleet project was developed and managed by Climate Change Mitigation Technologies LLC (CCMT), the leading New Jersey-based developer and manager of zero-emission truck and bus projects for public and private fleets. The New Jersey Department of Environmental Protection funded a portion of the project using Volkswagen Mitigation Trust funds and Red Hook funded the balance of vehicle and project costs. CCMT is partnered with Hudson County Motors, Inc. in Secaucus, New Jersey, one of the largest truck dealers in northern New Jersey, and the first BYD Motors truck dealer in the nation. BYD Motors is the leading electric truck and bus manufacturer in the world, with over 14,000 battery electric trucks and 65,000 electric buses deployed worldwide. BYD has US factory operations in Lancaster, CA, and a regional service and parts center in Lodi, New Jersey. Warren Buffett’s Berkshire Hathaway Energy is BYD’s largest institutional shareholder. The BYD model 8Y yard tractors being deployed by Red Hook Container Terminals LLC are third-generation equipment that come with 217 kWh lithium iron phosphate battery packs that have 241 horsepower and are capable of pulling loads of up to 102,000 lbs GVWR. They can operate continuously for up to 12 hours or more before recharging or can operate 24/7 with opportunity charging during shifts. AC and DC charging is available. DC fast charging takes approximately 2 hours from a 20% state of charge. Early operational results indicate that the yard tractor can operate two whole shifts before needing re-charging. Red Hook Container Terminal LLC President & CEO Mike Stamatis said, “Red Hook has always taken the health of the communities it operates in, its workers, and the planet seriously. Our Cross-Harbor Barging Operation between our facilities in Port Newark and Red Hook Brooklyn remove an estimated 30,000 truck trips off of New Jersey and New York City streets every year, reducing local diesel truck air pollution in the community and C02 emissions in the atmosphere. It is both cost-effective and environmentally sustainable. We are now going to the next level by eliminating diesel air pollution and CO2 emissions at our Port Newark facility that we expect will benefit of our neighbors in Newark, our workers, and the planet. This project was a long-time in the making and a large investment, but it is an investment we believe will return dividends in terms of public health, operational costs, and efforts to save the planet. This is a giant step for Red Hook and we hope others will take giant steps because now is the time to join the fight against climate change. We greatly appreciate our partners at the Port Authority, the New Jersey Department of Environmental Protection, Climate Change Mitigation Technologies LLC, BYD Motors Inc., and Hudson County Motors who helped make this day a reality.” Aaron Gillmore, Vice-President of Electric Trucks, BYD Motors, said, “Thanks to the collaborative efforts between Hudson County Motors, Climate Change Mitigation Technologies, and Red Hook Container Terminal CEO Mike Stamatis, BYD Class 8 Electric Yard Trucks are hard at work at Port Newark’s Red Hook Container Terminal. BYD brings a combination of innovative and safe battery technology, and the experience of over 14,000 successful deployments of heavy duty electric trucks worldwide to the Garden State of New Jersey. We are proud to be here, and proud to be part of the clean energy transition benefitting the Newark community and contributing to better health for workers.” Contact Info: James ShermanRed Hook Container Terminal Begins Commercial Operation of Fleet of 10 Heavy-Duty Zero Emission Battery Electric Yard Tractors
Phone: 973-303-2106
Email: jsherman@ccmtdg.com
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