In a significant move with far-reaching implications for the energy industry, French oil and gas services conglomerate Technip Energies has recently unveiled a groundbreaking joint venture (JV) in the domain of green hydrogen solutions. The venture, aptly named “Rely” is a collaborative effort with Belgian firm John Cockerill and reflects a strategic response to the urgent need to combat climate change while capitalizing on evolving geopolitical dynamics, particularly Russia’s invasion of Ukraine. This development is accompanied by the release of Technip Energies’ robust first-quarter earnings report, which exceeded expectations and underscores the company’s positioning in the shifting landscape of global energy.
The contemporary era is characterized by an intensified focus on sustainable practices and mitigating the impacts of climate change. This necessitates innovative solutions to decarbonize industries that have historically proven resistant to electrification. Green hydrogen, derived through the process of electrolysis fueled by renewable energy sources, has emerged as a potent contender in this arena. It is within this context that Technip Energies and John Cockerill have come together, signaling the confluence of technology, innovation, and sustainable development.
The dynamics of global energy have undergone significant transformations, driven by a confluence of factors, including environmental concerns, technological advancements, and geopolitical developments. The international response to Russia’s incursion into Ukraine has catalyzed a shift in energy investments. Western countries, compelled by the imperative to assert their stance, have imposed sanctions on Moscow’s energy exports, which, in turn, has opened up opportunities for energy service companies to redefine their portfolios. This has led to an increased focus on liquefied natural gas (LNG) and low-carbon energy sources, reinforcing the trend towards sustainable energy alternatives.
The newly forged joint venture, Rely, symbolizes a collaborative effort to redefine the energy landscape. With 60% ownership by Technip Energies and the remaining 40% by John Cockerill, the partnership aspires to achieve revenues exceeding 1 billion Euros by the year 2030. This underscores the financial viability and long-term potential of green hydrogen solutions and associated technologies. The emphasis on joint endeavors signifies the recognition that addressing the complex challenges of climate change necessitates synergy and shared expertise.
Green hydrogen holds the promise of being a transformative force in decarbonizing industries that are hard to abate and electrify. By leveraging the power of renewable energy in the electrolysis process, hydrogen production can be made more sustainable and environmentally friendly. Additionally, the utilization of Power-to-X technology, which harnesses surplus renewable electricity to generate storable substances like hydrogen or methane, adds another layer of versatility to the solution. This combination of green hydrogen and Power-to-X represents a holistic approach to addressing climate change and creating a cleaner energy future.
The scope of Rely is comprehensive, encompassing end-to-end solutions that span the entire lifecycle of green hydrogen projects. From pre-final investment decision services to proprietary products, project execution, and operation and maintenance, the venture reflects a commitment to delivering sustainable solutions that are not only environmentally responsible but also economically viable. This aligns with Technip Energies’ core competency, which lies in engineering and technology for the energy industry. The company’s resilience and adaptability in the face of evolving market demands are evident in its first-quarter financial results.
Technip Energies’ first-quarter earnings report surpasses expectations, demonstrating the company’s agility in navigating the complex energy landscape. Strong performance across segments, coupled with an order intake buoyed by significant awards in areas like ethylene, carbon capture, and sustainable fuels, underscores the company’s positioning as a key player in sustainable energy solutions. Notably, the Project Delivery segment, driven by robust investments in LNG and customer spending cycles, is poised for substantial growth in order intake over the coming years, particularly in 2023 and 2024.
The financial strength of Technip Energies is further evidenced by its adjusted recurring earnings before interest and taxes (EBIT), which stood at 107.3 million Euros ($118.9 million) for the first quarter, surpassing the forecasted figure of 101.4 million Euros. This financial robustness not only reflects the company’s adeptness in managing market dynamics but also highlights its readiness to lead in the emerging landscape of sustainable energy solutions.
In a broader context, the emergence of Rely and Technip Energies’ impressive financial performance raises important questions about the trajectory of the global energy industry. As countries, industries, and consumers grapple with the urgency of climate change, investments in green technologies gain prominence. However, such initiatives must also contend with geopolitical considerations, as exemplified by Russia’s actions in Ukraine. The global energy market is thus becoming a theater where environmental sustainability, economic viability, and geopolitical strategies intersect, and businesses like Technip Energies are at the forefront of navigating this intricate landscape.
Writing by Kevin Wood; Editing by Sarah White