Corre Energy has successfully secured offtake arrangements for its green hydrogen GHH project in Denmark, leading to the commercial close of the initiative.
This achievement, the company’s second commercial close in 2023, follows a similar milestone reached for the ZW1 project in the Netherlands earlier in the year.
Key elements, including land, grid, and cavern access, are now in place for both projects, significantly advancing them toward completion and the Final Investment Decision (FID) stage.
The attainment of commercial close status serves to substantially reduce the risks associated with project delivery and contributes to the broader de-risking of Corre Energy’s overall portfolio.
The company emphasizes that these developments establish a clear path to FID, generating revenue for Corre Energy.
Furthermore, the offtake agreements underscore strong customer demand and successful partnerships.
Co-investment discussions with strategic partners are underway following the launch of a portfolio-level funding process in the second half of 2023.
These discussions are now being finalized for the Danish GHH, Dutch ZW1, and German Ahaus 1 projects. These strategic partners play a crucial role in financially de-risking the projects and expediting the FID process.
While the specific terms of these agreements will be communicated in early 2024, reflecting the current development stage of the projects, Corre Energy anticipates sharing details of broader funding solutions as the ongoing process progresses.
In 2023, Corre Energy expanded its portfolio by adding two new schemes in Germany and securing the opportunity to invest in its first U.S. project, effectively doubling the size of its pipeline.
Additionally, the company announced a global collaboration with Siemens Energy, providing a standardized and scalable Compressed Air Energy Storage (CAES) solution for deployment across its platform.
Keith McGrane, Corre Energy chief executive, said “With a new offtake arrangement and three strategic co-investment partners in advanced negotiation, we round off 2023 having achieved significant progress and key milestones.”
“We have delivered our stated plans to achieve commercial close in Denmark and this follows just six months after the same achievement in the Netherlands.”
“This is combined with our new projects in Germany, securing an option agreement in the US and signing a global collaboration agreement with Siemens Energy.”
“Meanwhile, the new co-investment partnerships will deliver a capital solution on a project-by-project basis while unlocking wider portfolio funding.”
“Taken together, the funding and strategic partner progress, our commercial close milestones, our technology and people, and the broader market tailwinds give Corre Energy significant momentum.”