Tallgrass and Equinor to Jointly Pursue Opportunities for Hydrogen and Ammonia Production, Infrastructure Development in North America

Rhea-AI Summary

Tallgrass and Equinor have partnered to explore large-scale low-carbon hydrogen and ammonia projects in North America. They plan to conduct a front-end engineering and design (FEED) study focused on hydrogen production with at least 95% CO2 capture for sequestration. The initiative aligns with US decarbonization goals and aims to integrate hydrogen and ammonia into clean energy systems. The potential emissions reductions from their projects could equal the CO2 emissions of a significant number of vehicles in populous states. Both companies emphasize their commitment to the energy transition.

Positive

• Partnership with Equinor to develop low-carbon hydrogen and ammonia projects.
• Joint funding of a FEED study for large-scale hydrogen production with CO2 capture.
• Potential annual emissions reductions comparable to reducing CO2 from one-third of vehicles in populous states.

Negative

• None.

HOUSTON--(BUSINESS WIRE)-- Tallgrass and Equinor have announced a collaborative effort to pursue opportunities for development of large-scale, low-carbon hydrogen and ammonia projects in North America. The partners will assess the production and market potential for hydrogen and ammonia, and associated distribution infrastructure to help facilitate broad decarbonization.

Under the memorandum of understanding, Tallgrass and Equinor have agreed to initial co-development activities, including the joint funding of a front-end engineering and design (FEED) study. The study will be focused on large-scale hydrogen production, incorporating the capture of a minimum of 95% of the CO2 for permanent sequestration, coupled with ammonia for efficient transportation and storage. As part of the study, Tallgrass and Equinor are evaluating multiple regional energy centers across the US.

Recent policy developments further confirm the US commitment to decarbonized energy projects and reflect the important role that a full-scale hydrogen economy could play in providing communities with clean and reliable energy. Equinor and Tallgrass share a similar commitment and will work together towards advancing the integration of low- or zero-carbon hydrogen and ammonia into regional clean energy clusters, while taking a holistic approach to full value-chain emissions and resource conservation.

“The joint initiative with Tallgrass to launch plans for a large-scale clean ammonia value chain in the US is fully in line with the roadmap of making Equinor carbon neutral by 2050. It builds on complementary experience in both companies and the common aspiration to take a leading role in the global energy transition,” says Grete Tveit, senior vice president for Low Carbon Solutions in Equinor.

“We are pleased to announce these significant initiatives with Equinor and are excited to continue our investments in the next generation of decarbonization infrastructure,” says Dustin Bashford, Tallgrass’ Segment President. “Equinor has shown tremendous leadership in global energy development. At Tallgrass, we are equally focused on innovative solutions that propel investment in decarbonization and renewables and advance solutions that can rapidly expand North America’s clean energy supply chain.”

“The magnitude of annual emissions reductions from our potential regional energy centers equates to eliminating the CO2 emissions of over one-third of the total automobiles on the road in states as populous as Colorado, Arizona, and Massachusetts,” added Mr. Bashford. “It is this type of meaningful decarbonization that we are committed to rapidly advancing.”

Cautionary Note Concerning Forward-Looking Statements

Disclosures in this news release contain forward-looking statements. All statements, other than statements of historical fact, included in this press release that address activities, events or developments that management expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the successful development and execution of the referenced hydrogen infrastructure projects; the stated capacity and expected energy output of the projects; the timing of the completion of the projects; the expectation that these projects will achieve the stated carbon offset and related goals; and the expected benefits, economic or otherwise, of the proposed projects to the local communities and affected regions across the United States. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Tallgrass, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements, and other important factors that could cause actual results to differ materially from those projected, including those set forth in reports and financial statements made available by Tallgrass. Any forward-looking statement applies only as of the date on which such statement is made, and Tallgrass does not intend to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

About Tallgrass

Tallgrass is a leading energy infrastructure company focused on safely, reliably and sustainably delivering the energy and services that fuel homes and businesses and enable quality of life. We are committed to being at the forefront of efforts to decarbonize our world. An investor group led by Blackstone Infrastructure Partners, which includes Enagás SA, GIC, NPS and USS, owns the outstanding equity interests in Tallgrass. Learn more at Tallgrass.com.

About Equinor

Equinor is an international energy company committed to long-term value creation in a low-carbon future. Equinor’s purpose is to turn natural resources into energy for people and progress for society. Equinor’s portfolio of projects encompasses oil and gas, renewables and low-carbon solutions, with an ambition of becoming a net-zero energy company by 2050. Headquartered in Stavanger, Norway, Equinor is the leading operator on the Norwegian continental shelf, present in around 30 countries worldwide.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220927005455/en/

Tallgrass Media Inquiries

Steven Davidson, 817-988-4284

media.relations@tallgrass.com

Equinor Media Inquires

Ola Morten Aanestad, +47 480 80 212

oaan@equinor.com

Source: Tallgrass

FAQ

What is the partnership between TEGP and Equinor about?

TEGP and Equinor have formed a partnership to develop large-scale low-carbon hydrogen and ammonia projects in North America.

What are the key goals of the TEGP and Equinor collaboration?

The collaboration aims to conduct a FEED study on hydrogen production, with a focus on CO2 capture and facilitating decarbonization.

When was the partnership between TEGP and Equinor announced?

The partnership was announced on September 27, 2022.

How does the TEGP and Equinor partnership affect decarbonization efforts?

The partnership is expected to significantly contribute to decarbonization by developing infrastructure that reduces emissions in regional energy centers.

What is the significance of the FEED study in the TEGP and Equinor initiative?

The FEED study will assess the feasibility of large-scale hydrogen production and CO2 sequestration, playing a critical role in project development.