Sempra Infrastructure and AVANGRID announce plans to develop US green hydrogen and ammonia projects

Source: press release, 12 October 2022

Chief executive officer of Sempra Infrastructure, Justin Bird
Chief executive officer of Sempra Infrastructure, Justin Bird (photo: Sempra)

AVANGRID, a member of the Iberdrola Group, and Sempra Infrastructure, a subsidiary of Sempra, have announced they have entered into a heads of agreement (HOA) for the potential joint development of US green hydrogen and ammonia projects powered by renewable sources.

The HOA provides a framework for the companies to identify, appraise, and potentially develop large-scale green hydrogen projects to help meet the energy and decarbonisation needs of both US and international customers.

“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,” says 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,” says 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.”

AVANGRID’s deep background in renewable development as the third largest renewables operators in the US, complements Sempra Infrastructure’s complex project development and commercial expertise across clean power, energy networks and LNG and net-zero solutions.

Sempra Infrastructure is currently developing multiple world-class 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, as well as other pathways to produce clean hydrogen and ammonia leveraging the resources available in different regions.

The referenced HOA is non-binding, and the development of these joint projects is subject to a number of risks and uncertainties, including reaching definitive agreements, securing all necessary permits, and reaching a final investment decision with respect to each project.