Phillips 66 and Plug Power Inc. (NASDAQ: PLUG), a leading provider of turnkey hydrogen solutions, signed a memorandum of understanding to collaborate on the development of low-carbon hydrogen business opportunities.
Phillips 66, which has 13 wholly owned and joint venture refineries in the US and Europe, owns extensive hydrogen-related infrastructure and uses hydrogen in the manufacturing of transportation fuels. With more than 20 years of history, and customers such as Amazon, Walmart and Home Depot, Plug Power is a leader in hydrogen fuel cells and electrolyzers. The company has begun construction on 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 US and Europe.
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. Hydrogen is a key component of our diversified Emerging Energy portfolio strategy.