Xebec Launches Hydrogen Supply Strategy in the UK
- Signed Gas-as-a-Service contract with Saint-Gobain and started construction of a Decentralized Hydrogen Production Hub -
MONTREAL, (QC), February 16, 2021 – Xebec Adsorption Inc. (TSX: XBC) (“Xebec”), a global provider of clean energy solutions for renewable and low carbon gases, is pleased to announce that its wholly owned subsidiary HyGear, has signed a Gas-as-a-Service (“GaaS”) contract with Saint-Gobain Glass (EPA: SGO) for a 15-year term. Saint-Gobain Glass is one of the world’s largest float glass manufacturers and will be supplied with hydrogen for their production facility in Eggborough, United Kingdom.
Last month, HyGear also delivered an on-site hydrogen generation system to KIWA Group in Birmingham for fuel cell components testing. These recent orders and deliveries support the launch of the company’s hydrogen supply strategy in the United Kingdom, which is marked by the start of construction of a Decentralized Hydrogen Production Hub. Located in West Bromwich, the company’s second hub is expected to initially reach a capacity of 300 kg of hydrogen per day and can be gradually expanded based on market demands. The site will be operated in collaboration with Buse Gases Ltd as a joint venture.
“The cornerstone of our hydrogen supply strategy is to satisfy the existing and evolving needs for industrial hydrogen, while also facilitating the upcoming demand for fuel cell electric vehicles (FCEVs). We are excited to be announcing the construction of our first Decentralized Hydrogen Production Hub in the UK because these hubs will initially serve our industrial customers such as Saint-Gobain, and gradually start supplying hydrogen vehicle filling stations. This layered approach will allow us to support the roll-out of refueling stations in an economically viable way as the broader hydrogen economy forms in the next decades,” stated Marinus van Driel, President of Xebec Europe.
Through the acquisition of HyGear last December, Xebec gained access to highly efficient on-site hydrogen generation through steam methane reforming (SMR) and electrolysis. On-site generation reduces the need for central production, compression or liquefaction and road transportation, and therewith offers a more cost-effective and environmentally friendly option for hydrogen supply.
The company is developing regional strategies worldwide in which on-site Gas-as-a-Service equipment produces the base-load supply and peak demand is supported by Decentralized Production Hubs near end users. As a result of this combined production strategy, it is expected that customers will have access to the most cost-effective and lowest emission hydrogen available today.
With the announcement by the UK government to achieve net-zero carbon emissions by 2050, hydrogen adoption is being seen as one of the key pathways towards achieving this goal. The hydrogen supply launch in the United Kingdom is expected to provide a foundational blueprint for Xebec’s accelerated expansion plans of setting up decentralized production hubs globally, and its core strategy to build hydrogen energy infrastructure by first targeting demand in industry.