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Shell (SHEL) and Ceres to Scale Up Green Hydrogen Production
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Shell plc (SHEL - Free Report) , the British oil and gas major, has struck a deal with the Ceres Power Holdings plc, a leading firm in the clean energy space, for the development of a solid oxide electrolyser (SOEC) module suitable for large-scale industrial applications, including synthetic fuels, ammonia and green steel. The new contract marks the beginning of the second phase of an ongoing collaboration between Ceres and Shell that started in 2022.
Previously, the partnership had successfully deployed a 1 MW SOEC system at Shell's research and development facility in Bangalore, India. The new contract is aimed at advancing the collaboration's achievements by designing a pressurized module for the SOEC. This module is engineered to scale up to hundreds of megawatts and seamlessly integrate with industrial plants to facilitate sustainable fuel production.
The new module will be used to understand the role of pressurized systems in enhancing efficiency and performance and its integration with other processes. The data and insights gained from the 1MW demonstration project will be leveraged in order to design a commercially competitive and scalable solution for industrial applications. In addition to developing a scalable solution, this initiative is also aimed at tapping into the significant efficient gains offered by the SOEC technology. This technology is known for delivering 35% more hydrogen per unit of electrical energy when supplied with heat from other industrial processes.
The project is aimed at achieving a module-level efficiency of less than 36 kWh per kilogram of hydrogen produced. This target aligns with the EU SOE 2030 technology targets.
Ceres Power Holdings has highlighted the significance of its partnership with Shell in developing the SOEC technology. It has emphasized that the advancement of the technology is crucial in meeting the mounting demand for green hydrogen and synthetic fuels.
Archrock is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.
SM Energy is an upstream energy firm operating in the prolific Midland Basin region and the South Texas region. For 2024, the company expects its production to increase from the prior-year reported figure, signaling a bright production outlook.
Hess Midstream owns, operates, develops and acquires a wide range of midstream assets, providing services to Hess Corporation and other third-party customers. The partnership has a stable fee-based revenue model secured via long-term commercial contracts. Since Hess Midstream operates through 100% fee-based contracts, it is exposed to minimal commodity price risks.
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Shell (SHEL) and Ceres to Scale Up Green Hydrogen Production
Shell plc (SHEL - Free Report) , the British oil and gas major, has struck a deal with the Ceres Power Holdings plc, a leading firm in the clean energy space, for the development of a solid oxide electrolyser (SOEC) module suitable for large-scale industrial applications, including synthetic fuels, ammonia and green steel. The new contract marks the beginning of the second phase of an ongoing collaboration between Ceres and Shell that started in 2022.
Previously, the partnership had successfully deployed a 1 MW SOEC system at Shell's research and development facility in Bangalore, India. The new contract is aimed at advancing the collaboration's achievements by designing a pressurized module for the SOEC. This module is engineered to scale up to hundreds of megawatts and seamlessly integrate with industrial plants to facilitate sustainable fuel production.
The new module will be used to understand the role of pressurized systems in enhancing efficiency and performance and its integration with other processes. The data and insights gained from the 1MW demonstration project will be leveraged in order to design a commercially competitive and scalable solution for industrial applications. In addition to developing a scalable solution, this initiative is also aimed at tapping into the significant efficient gains offered by the SOEC technology. This technology is known for delivering 35% more hydrogen per unit of electrical energy when supplied with heat from other industrial processes.
The project is aimed at achieving a module-level efficiency of less than 36 kWh per kilogram of hydrogen produced. This target aligns with the EU SOE 2030 technology targets.
Ceres Power Holdings has highlighted the significance of its partnership with Shell in developing the SOEC technology. It has emphasized that the advancement of the technology is crucial in meeting the mounting demand for green hydrogen and synthetic fuels.
Zacks Rank and Key Picks
Currently, SHEL carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energy sector are Archrock Inc. (AROC - Free Report) , SM Energy (SM - Free Report) and Hess Midstream Partners LP (HESM - Free Report) . Archrock and SM Energy presently sport a Zacks Rank #1 (Strong Buy) each, while Hess Midstream carries a Zacks Rank of #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Archrock is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.
SM Energy is an upstream energy firm operating in the prolific Midland Basin region and the South Texas region. For 2024, the company expects its production to increase from the prior-year reported figure, signaling a bright production outlook.
Hess Midstream owns, operates, develops and acquires a wide range of midstream assets, providing services to Hess Corporation and other third-party customers. The partnership has a stable fee-based revenue model secured via long-term commercial contracts. Since Hess Midstream operates through 100% fee-based contracts, it is exposed to minimal commodity price risks.