Iberdrola-controlled Avangrid and Sempra Infrastructure announced an agreement on Wednesday covering potential future green hydrogen and ammonia projects along the US Gulf of Mexico and Pacific coasts.

The non-binding pact creates a framework to jointly identify, appraise, and potentially develop large-scale projects “powered by renewable sources”, according to a statement by the partners.

Avangrid, which is publicly traded in New York, operates almost 8GW of battery storage, onshore wind, and solar capacity through its renewables subsidiary, third in the US behind NextEra Energy and Warren Buffett's Berkshire Hathaway Energy, according to the American Clean Power Association (ACP), a national trade group.