French oil and gas services group Technip Energies (TE.PA) on Thursday announced a hydrogen green solutions joint-venture with Belgian group John Cockerill, while reporting stronger-than-expected first-quarter earnings.
The need to combat climate change, along with Russia's invasion of Ukraine, have created opportunities for energy service firms, with increased investments in liquefied natural gas (LNG) and low-carbon energy sources as Western countries impose sanctions on Moscow's energy exports.
The JV, named Rely, will be 60% owned by Technip Energies and 40% by John Cockerill, and aims to reach revenues of more than 1 billion euros by 2030, the group said.
According to Technip Energies, green hydrogen - obtained through an electrolysis process fueled by renewable energy - and Power-to-X technology will play a key role in decarbonizing hard-to-abate and hard-to-electrify industries.
Power-to-X converts surplus electricity, usually from renewable sources like wind and solar, by using it to produce storable substances or fuels such as hydrogen or methane.
Rely will offer end-to-end solutions, from pre-final investment decision services through to proprietary products, project execution and operation and maintenance, Technip said.
Technip, which specialises in engineering and technology for the energy industry, posted stronger-than-expected first-quarter core profit, citing strong performance in the segments and an order intake benefiting from important awards in ethylene, carbon capture and sustainable fuels.
Technip's Project Delivery segment, supported by a robust LNG and customer spending cycle, should see a significant improvement in order intake during 2023 and 2024, the company said.
The group posted adjusted recurring earnings before interest and taxes (EBIT) of 107.3 million euros ($118.9 million) for the March quarter, beating analysts' forecast of 101.4 million euros.
Green hydrogen has the potential to play a key role in the transition to a low-carbon economy.