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Equinor Launches Open Season for Low-Carbon Hydrogen Buyers

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Equinor ASA (EQNR - Free Report) , the Norwegian energy major, has initiated its first Hydrogen Open Season, inviting parties to express interest in purchasing low-carbon hydrogen from its upcoming H2M Eemshaven project in the Netherlands. This 1 GW project, developed in partnership with Linde, is aimed at producing low-carbon hydrogen by reforming natural gas with integrated carbon capture and storage.

According to Equinor, the H2M Eemshaven facility will capture and permanently store over 95% of Norway's CO2 emissions offshore. With a planned production capacity of 210,000 tons of decarbonized hydrogen annually, the project seeks to help the Netherlands and Germany reduce CO2 emissions while ensuring energy security.

Equinor initiated the front-end engineering design (FEED) phase in April 2024, targeting a production start by 2030. This large-scale project underscores Equinor's commitment to facilitating the energy transition while maintaining supply reliability for European markets.

EQNR’s Hydrogen Open Season was released on Dec. 2, 2024, allowing interested parties to register their intent for long-term supply agreements for low-carbon hydrogen. Registrations will remain open until Jan. 31, 2025. The company will prioritize entities capable of offtaking at least 50 MW annually and assess potential buyers based on their hydrogen grid connectivity and financial viability. Qualifying parties will move to the next phase, gaining access to detailed contractual terms and product information under a non-disclosure agreement.

The H2M Eemshaven project highlights Equinor’s commitment to advancing low-carbon solutions, addressing climate goals and fostering energy transition across Europe.

EQNR’s Zacks Rank & Key Picks

EQNR currently carries a Zacks Rank #3 (Hold).

Investors interested in the energy sector may look at some better-ranked stocks like Smart Sand, Inc. (SND - Free Report) , FuelCell Energy (FCEL - Free Report) and Nine Energy Service (NINE - Free Report) , each presently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Smart Sand is a low-cost producer of high-quality Northern White frac sand, an ideal proppant for hydraulic fracturing and various industrial applications. The company provides proppant and other logistics services for several companies in the oil and gas industry. With sustained oil and gas market demand, SND is expected to see growing demand for its services, reflecting a positive outlook.

FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, thereby reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.

Nine Energy Service provides onshore completion and production services for unconventional oil and gas resource development. The company operates across key prolific basins in the United States, including the Permian, Eagle Ford, MidCon, Barnett, Bakken, Rockies, Marcellus and Utica, as well as throughout Canada. With a sustained demand for oil and gas in the future, the demand for NINE’s services is anticipated to increase, which should position it for growth in the long run.

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