MUFG EMEA and various key partners have signed a Memorandum of Understanding (MoU) to develop a green fuel corridor for renewable hydrogen and its derivatives, as well as liquid CO2, connecting Portugal to Northern Europe. Green corridors are shipping routes where low-emission shipping solutions are utilised to transport low carbon fuels such as hydrogen.
The MoU brings together key partners across the hydrogen value chain, including financial partners, terminal operators, academic and policy institutions, industrial corporates committed to decarbonization, green fuel producers and alternative fuel offtakers. Financing partners will seek to provide financial resources, including accelerator financing, debt and equity, to unlock large-scale energy transition projects in the region.
The MOU aims to establish and encourage institutional cooperation to create a reliable and efficient supply chain for green hydrogen derivatives from Portugal to the Netherlands and Germany and CO2 from Portugal and Germany to the Netherlands and Scandinavia. The MoU will also contribute to decarbonisation efforts and development of hydrogen, carbon capture and storage value chains in these countries.
Markus Schröder, Head of Structured Finance Office, Germany, MUFG EMEA, said:
"As part of MUFG's commitment to financing the energy transition, we are proud to be part of this initiative which brings together global industry leaders from Europe, Asia and North America to support the development of Portugal as an energy hub to Northern Europe. “As a market leader in advising, structuring, arranging and lending to energy projects across the globe, MUFG is well positioned to develop bespoke financing solutions to support our clients' energy transition objectives."
Marloes Ras, Chief Commercial Officer, Madoqua, remarked:
"Energy transition is a journey, where partnerships are key to success. Our recent ports collaboration is designed to make this approach a reality. Developing new generation facilities focused on producing e-fuels is just one piece of the integrated green fuel corridor puzzle. A significant amount of existing port, bunkering services and transportation infrastructure must be either re-purposed, augmented or built to meet the upcoming demand for e-fuels from the shipping and end use industry."