RWE and TotalEnergies sign long-term agreement for green hydrogen supply
RWE, Germany's largest utility, announced on Wednesday that it had agreed to supply French oil giant TotalEnergies, with approximately 30,000 tonnes green hydrogen per year, starting in 2030. This is one of the biggest deals ever made by this sector.
RWE stated that the agreement would last until 2044. It also said it was the largest amount of carbon neutral hydrogen ever purchased from a German facility.
RWE will supply TotalEnergies Leuna refinery in eastern Germany via its 300 megawatt electrolysis plant located in Lingen, west of Berlin, that is expected to begin operation in 2027.
No financial terms have been disclosed.
Markus Krebber, CEO of RWE, said: "This proves that hydrogen is a good option for customers with the right incentives."
The deal is amidst growing skepticism about green hydrogen projects across Europe. Critics point to the huge costs of a future technology, at a time where local industry is struggling with high energy prices.
This deal strengthens the partnership between TotalEnergies and the two major energy companies in the field of offshore wind. It also helps TotalEnergies achieve its goal to decarbonise its European refineries.
It announced last month that it would work with Air Liquide to develop two hydrogen-based green projects, which aim to decarbonise Total’s Dutch and Belgian refineries.
Hydrogen is greener when it's produced using renewable electricity by electrolysing water rather than by removing it from natural gases and releasing CO2. It leaves only oxygen and water as by-products after burning.
The RWE Generation unit at Lingen will use the capacity booked of the nearby Gronau-Epe hydrogen storage facility to supply the electrolyser.
RWE Gas Storage West (a subsidiary of RWE) plans to start operating the facility by 2027.
The new German hydrogen core network will provide transport to Leuna between 2025-2032. (Reporting and editing by Lincoln Feast, Clarence Fernandez and Vera Eckert)
(source: Reuters)
