(Reuters) -Phillips 66 and clean energy provider Plug Power Inc will collaborate to develop low-carbon hydrogen businesses, the companies said on Wednesday, a month after the U.S. refiner announced a target to cut greenhouse gas emissions.
The refiner had said in late-September it would cut such emissions by 30% from its operations by 2030, through investments in lower-carbon business platforms including renewable fuels, lithium-ion batteries, carbon capture, and hydrogen.
“Phillips 66 stands to help us meet our goal of producing 1,000 tons per day of green hydrogen while deploying cost-efficient solutions within the renewable fuels sector,” Plug Power said in a statement.
Under the agreement, the companies said they will explore ways to deploy Plug Power’s technology within Phillips 66’s operations.
Most hydrogen used today is extracted from natural gas in a process that produces carbon emissions, which defeats the object for many policymakers. Green hydrogen, on the other hand, is a zero-carbon fuel made by electrolysis, using renewable power from wind and solar to split water into hydrogen and oxygen.
(Reporting by Rithika Krishna in Bengaluru; editing by Uttaresh.V)
