USA: Engineering Phillips 66 Teams Up with Plug Power for Green Hydrogen Business Opportunities
Phillips 66 and Plug Power have entered into a MOU under which both the companies will work towards scaling low-carbon hydrogen in the industrial and mobility sectors and developing hydrogen-related infrastructure. The company is currently establishing green hydrogen production facilities in the USA in order to supply 500 tons per day of liquid green hydrogen by 2025.
Phillips 66, which has 13 wholly owned and joint venture refineries in the U.S. and Europe, owns extensive hydrogen-related infrastructure and uses hydrogen in the manufacturing of transportation fuels. Plug Power is a leader in hydrogen fuel cells and electrolyzers. The company has begun construction on state-of-the-art green hydrogen production facilities in California, New York, Tennessee and Georgia that will ultimately supply 500 tons per day of liquid green hydrogen by 2025.
As part of this agreement, the companies will explore ways to deploy Plug Power’s technology within Phillips 66’s operations, leveraging Plug Power’s experience as a full value chain provider within the hydrogen economy. Plug Power will benefit from Phillips 66’s capabilities as a developer of large-scale energy infrastructure, operator of industrial-scale hydrogen production facilities, and presence in the fuels marketing segment in the U.S. and Europe.
David Bow, Executive Vice President of Electrolyzers Solutions at Plug Power said, “Phillips 66 stands to help us meet our goal of producing 1,000 tons per day of green hydrogen while deploying cost-efficient solutions within the renewable fuels sector.”
The companies’ memorandum of understanding provides a framework for working together on three key objectives:
- Integrating and scaling low-carbon hydrogen in the industrial sector;
- Advancing hydrogen fueling opportunities for the mobility sector; and
- Developing hydrogen-related infrastructure to support the build-out of the hydrogen value chain
“We believe hydrogen is an important pathway for hard-to-electrify industries in a lower-carbon energy landscape,” said Heath DePriest, Vice President of Phillips 66’s Emerging Energy group, which is focused on building lower-carbon business platforms. “Hydrogen is a key component of our diversified Emerging Energy portfolio strategy.”