(Reuters) - Johnson Matthey (LON:JMAT) said on Monday it has signed a three-year supply agreement with Norwegian firm Hystar AS to ramp up green hydrogen production as the British company shifts focus to a sector that is drawing big investments.
The announcement comes as companies globally are increasing investments in green hydrogen, a zero-carbon fuel made by using renewable power from wind and solar energy to split water into hydrogen and oxygen, in their quest for energy which does not add to global warming.
If the electrolyzers, the devices used in the splitting process, are powered by renewable energy, the product is called green hydrogen - a fuel free of greenhouse emissions.
Green hydrogen is a potential way to decarbonise transport by powering vehicles with only water as a by-product, helping countries meet their net zero emissions goals.
Johnson Matthey, which makes catalytic converters for vehicles and refines the platinum metal used mainly by automakers, announced a similar partnership with U.S.-based Plug Power in January.
The firm on Monday said it will supply Hystar with membrane electrode assemblies (MEAs) - a key component for electrolysers, which will be used to ramp up green hydrogen production.