Uniper, Kyuden Agree to Explore CCUS, Hydrogen, RE Partnerships

Kyuden International and Uniper SE have signed a memorandum of understanding to explore potential joint opportunities in ammonia and hydrogen; carbon capture, utilization and storage (CCUS); and renewable energy.

The agreement would help German power and gas utility Uniper expand in Asia and Japan’s Kyuden, part of Kyushu Electric Power Co. Inc., grow in Europe by leveraging on each company’s existing footprint, according to a joint statement.

“The partnership aims to create business opportunities in hydrogen and ammonia trading activities through Uniper’s global portfolio of low-carbon and green ammonia and other hydrogen derivatives, combined with Kyuden International’s Asian and global operations”, the companies said. “The partnership also seeks to unlock further business expansion opportunities in Europe for Kyuden International, leveraging on Uniper’s extensive expertise and commitment to developing more flexible and dispatchable power generation units in its core markets across Europe”.

Andreas Gemballa, CCO of Global Origination at Uniper, commented, “Through this multifaceted collaboration we are committed to advancing innovative and sustainable solutions”.

“By combining our strengths, we aim to contribute meaningfully to Japan’s decarbonization efforts and explore new business opportunities”, Gemballa added.

Takashi Mitsuyoshi, president of Kyuden International, said, “This mutually complementary synergy is anticipated to drive further growth for both companies”.

As of 2023 Uniper had 40 countries of operation, with Germany, the Netherlands, Sweden and the United Kingdom as its core markets, according to the company. It had roughly 22.5 gigawatts of power generation capacity, about equal to the Netherlands’ total capacity, Uniper says on its website.

Carbon dioxide (CO2)-free energy sources accounted for about 20 percent of Uniper's generation capacity in 2023. The CO2-free portion consisted of 3.6 GW of hydropower in Germany and Sweden and 1.4 GW of nuclear power in Sweden.

“Besides investing in onshore wind and solar, Uniper will further expand its already well-established portfolio of long-term solar and wind power purchase agreements (PPAs)”, Uniper says. “These long-term PPAs create the basis for the direct purchase of electricity generated from renewable sources and enable Uniper to expand its renewable energy portfolio on the basis of long-term contracts”.

Meanwhile its gas distribution portfolio as of 2023 consisted of over 200 terawatt hours (tWh) a year. Uniper had 7.3 billion cubic meters (257.8 billion cubic feet) of gas storage capacity in Europe. Uniper also had 0.9 tWh per year of biomethane supply capacity, according to the company.

Uniper plans to raise the share of green gases in its gas portfolio to five to ten percent by 2030, with green hydrogen a priority. It aims to build an installed electrolyzer capacity of over one GW by the end of the decade.

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