OMNI Features｜ExxonMobil Threatens to Scrap World's Largest Blue Hydrogen Project．Iberdrola Deutschland Signs PPA with O2 Telefónica to Supply Electricity from Baltic Eagle Offshore Wind Farm．Malaysian Utility to Build 2.5 GW of HHFS

Baytown refinery in Texas
（Source: ExxonMobil）

｜ExxonMobil Threatens to Scrap World's Largest Blue Hydrogen Project over US Emissions Criteria for Tax Credits
ExxonMobil has declared that it could cancel its blue hydrogen project at the Baytown refinery in Texas, depending on whether the US Treasury goes through with its draft guidance for clean H2 production to qualify for the $3/kg tax credit.

In 2022, the US oil supermajor announced plans to build the plant, which would produce one billion cubic feet (2.4 million tonnes) of hydrogen per year from natural gas with CO2 emissions captured and stored, with a final investment decision due this year and start-up scheduled for 2027 or 2028.

However, Mark Klewpatinond, global business manager for hydrogen at ExxonMobil, told the Houston Chronicle that based on the current draft guidance released by the Treasury last December on how lifecycle emissions for the four-tier production tax credit would be counted, adding that the draft guidance would mean the Baytown project would only be eligible for the lowest $0.60/kg tier of the tax credit and therefore be less economic.

The Treasury’s draft guidelines include a requirement that hydrogen producers must draw electricity from zero-carbon generators built within years of the H2 plant and in the same region.

｜Iberdrola Deutschland Signs PPA with O2 Telefónica to Supply Electricity from Baltic Eagle Offshore Wind Farm in Germany
Iberdrola Deutschland and O2 Telefónica have signed a 15-year Power Purchase Agreement (PPA). Starting from 2025, Iberdrola will supply O2 Telefónica with 3,000 GWh of renewable energy from the Baltic Eagle offshore wind farm located in the Baltic Sea, Germany.

The offshore wind farm will comprise 50 Vestas 9.5 MW wind turbines, and will be linked to the German high-voltage grid via the Ostwind 2 grid connection. The Baltic Eagle project is currently under construction in the German Baltic Sea, northeast of the Rügen island off the Pomeranian coast, and is scheduled to be commissioned by the end of 2024. The 476 MW wind farm will supply approximately 475,000 households with renewable energy while reducing CO2 emissions by approximately 800,000 tonnes per year.

O2 Telefónica has set the goal of reducing energy consumption per data volume by 87 per cent by 2025 compared to 2015. The company is also aiming for net zero emissions by 2040.

Apart from the PPA signed with O2 Telefónica, Iberdrola also signed agreements with Switzerland-headquartered Holcim, Salzgitter Flachstahl GmbH, Amazon, and SHS – Stahl Holding Saar in 2023, with electricity to be sourced from Baltic Eagle. Baltic Eagle, Wikinger OWF and Windanker project, these 3 wind projects form the so-called Baltic Hub, which will have a total capacity of more than 1.1 GW by 2026 and account for an investment of about EUR 3.6 billion in total.

｜Malaysian Utility to Build 2.5 GW of Hybrid Hydro-floating Solar
Tenaga Nasional Berhad, a Kuala Lumpur-based utility, says it plans to install Hybrid Hydro-Floating Solar (HHFS) at its hydropower facilities. It targeting 2.5 GW of capacity.

According to Tenaga Nasional Chief Executive Officer Dato’ Seri Ir. Baharin Din, using bodies of water for solar installation can conserve land usage, preserve land natural habitats, and reduce water evaporation. “Floating solar farms do not have water or air discharges that could negatively impact water or air quality. Hence, it minimizes pollution and supports biodiversity with minimal disruption to the aquatic ecosystems,” he said. “Floating solar farms can complement other renewable energy sources to power the national grid with the potential to boost clean power significantly.”

The HHFS project follows a Tenaga Nasional floating solar pilot project, located on a fish pond on the island of Stesen Janakuasa Sultan Azlan Shah on the western coast of Malaysia. Data from Tenaga Nasional shows that the pilot project has generated more than 600 MWh of energy since 2019. It features 288 installed PV modules with a total capacity of 105.12 kWp, equating to enough energy to meet the needs of 30 houses.

Malaysia had recorded an estimated 1.9 GW of installed solar capacity by the end of 2022, according to the International Renewable Energy Agency. The country has committed to increasing its renewable energy composition to 70% of its total generation capacity by 2050.

Reference: hydrogeninsight｜offshorewind.biz｜pv magazine