AVANGRID and Sempra Infrastructure announced they have entered into a head of agreement (HOA) for the potential joint development of U.S. green H₂ and ammonia projects powered by renewable sources.

The HOA provides a framework for the companies to identify, appraise, and potentially develop large-scale green H₂ projects to help meet the energy and decarbonization needs of both U.S. and international customers.

"The U.S. is facing unprecedented challenges and opportunities to develop competitive solutions that meet its growing energy needs, while also aiming to transition to a cleaner and more sustainable energy future," said Pedro Azagra, CEO of AVANGRID. "AVANGRID is very proud to innovate and develop green hydrogen and ammonia projects in collaboration with Sempra Infrastructure, which are crucial to decarbonize the industry and will help the country reach its ambitious clean energy goals."

"Clean hydrogen and ammonia can be effective decarbonization solutions for various sectors of the U.S. and global markets. We are excited to work together with AVANGRID to develop large-scale green hydrogen and ammonia projects to advance hydrogen's role in the global energy transition," said Justin Bird, CEO of Sempra Infrastructure. "Significant infrastructure will be needed for hydrogen's potential to become a reality and Sempra Infrastructure's combined platform is well-positioned to support the deployment of these new energy solutions."

AVANGRID's deep background in renewable development as the third largest renewables operators in the U.S., complements Sempra Infrastructure's complex project development and commercial expertise across clean power, energy networks and LNG and net-zero solutions.

Sempra Infrastructure is developing multiple world-class energy transition projects in North America, including LNG export projects to serve customers in both the Atlantic and Pacific Basins, as well as new opportunities in renewable energy, carbon capture and sequestration, as well as other pathways to produce clean H₂ and ammonia leveraging the resources available in different regions.

The referenced HOA is non-binding, and the development of these joint projects is subject to several risks and uncertainties, including reaching definitive agreements, securing all necessary permits, and reaching a final investment decision with respect to each project.