Wood seals Norwegian hydrogen tie-up

The move comes amid forecasts of rapid growth in green hydrogen in the years ahead as industries look to cut carbon emissions.

Green hydrogen fuel is produced through electrolysis power by renewable energy and can be used in carbon-intensive sectors. A recent study by Frost & Sullivan predicted that global green hydrogen production will skyrocket at a compound annual growth rate of 57 per cent between 2019 and 2030, rising from 40,000 tons to 5.7 million tons.

Craig Shanaghey, president of Wood’s operations across Europe, the Middle East, and Africa, said: “If the world is going to realise the potential of hydrogen as a sustainable, clean, and plentiful energy vector, a vast increase in production is necessary.

“We are excited about the opportunity to support NEL Hydrogen as they play their part in the green hydrogen revolution, and as we unite on our commitment to create a more sustainable and cleaner, greener future.”

The tie-up comes on the back of two other deals struck by Wood this month.

It was awarded a five-year contract to provide integrated facility services across TAQA’s North Sea assets across the Cormorant Alpha, North Cormorant, Eider Alpha, Harding, Tern Alpha, Brae Alpha, and East Brae assets.

Wood has also been appointed by Luxcara GmbH as the engineer on its Önusberget wind farm development, located in Sweden’s Norrbotten County, near the town of Piteå.

Upon completion, the 753-megawatt project is set to become Europe’s largest wind farm. The development will play a substantial role in supporting Sweden’s goal of becoming carbon neutral by 2045. The contract added to Wood’s long-term support of some of Sweden’s largest-scale wind farm developments.

In March, Wood entered into a partnership with ReNew ELP to develop the world’s first commercial-scale plastic recycling plant using an innovative advanced recycling process.

New technology

The plant, in the North-east of England, will use new technology to recycle end-of-life plastic waste into hydrocarbon feedstocks, for use in the manufacture of new plastic products and other materials. The process will decouple plastic manufacture from fossil resources and reduce carbon dioxide emissions.

Wood recently reported full-year results for 2020, showing that revenues fell 23.5 per cent. Although there had been a significant reduction in conventional energy activity, which was partially mitigated by strength in built environment, there was growth in renewables and relatively robust revenues in process and chemicals divisions.

Net debt, excluding leases, reduced by $410m (£300m) to $1.01bn at the end of the year, benefiting from disposal proceeds, steps taken to protect cashflow and improved working capital performance.

Wood's order book at the end of the year was worth some $6.5bn, with 67 per cent of that total to be delivered in 2021. However, this was down 17 per cent on 2019, reflecting macro conditions and a "discerning bidder approach".

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