Everfuel A/S has signed a conditional agreement with an undisclosed partner for supply of oxygen from HySynergy 2.0. This is the company’s first agreement to deliver oxygen made from electrolysis, thereby increasing the utilization of the HySynergy facility in Fredericia, Denmark.

Oxygen and surplus heat are both biproducts from green H₂ production through electrolysis. The oxygen supply agreement will improve the overall utilization and efficiency of the HySynergy 2.0 electrolyzer facility and provide a long-term revenue stream. The agreement is conditional on final investment decision by the undisclosed partner for the construction of a process facility adjacent to HySynergy which will use the oxygen and Everfuels decision to progress HySynergy 2.0, which recently received $34.94 MM in Danish IPCEI funding.

“Previously we have announced the contract for hydrogen supply to the Crossbridge Energy refinery subject to the now-granted $34.94 MM in IPCEI funding for HySynergy 2.0. With an agreement for oxygen offtake on HySynergy 2.0, we will have established a leading industrial-scale Power-to-X facility. Combined with contracts on process heat to the local district heat operator TVIS from HySynergy 1.0 we utilize all primary products in the electrolysis process: hydrogen, oxygen, and surplus heat,” said Jacob Krogsgaard, the CEO of Everfuel.

The long-term contract includes payment for a capacity reservation of oxygen and a recurring payment for the oxygen supply. Everfuel expects a minimum revenue of €1 MM/yr once the agreement is fully implemented with no expected additional cost to Everfuel. The company expects to provide further information as appropriate.