TotalEnergies and RWE Secure Major Green Hydrogen Deal in Germany
Key Ideas
- TotalEnergies and RWE signed a 15-year agreement for the supply of 30,000 metric tons of green hydrogen annually in Germany.
- RWE's electrolysis plant in Lingen, Lower Saxony, will produce the green hydrogen powered by renewable energy sources.
- The deal is a significant step in decarbonizing Germany's industrial sector and will help TotalEnergies reduce CO2 emissions at its Leuna refinery.
- The agreement is praised by government officials and is part of TotalEnergies' strategy to decarbonize its refineries across Europe.
TotalEnergies and RWE have finalized a groundbreaking 15-year deal for the purchase of green hydrogen in Germany. Starting in 2030, TotalEnergies will acquire approximately 30,000 metric tons of green hydrogen annually from RWE. The green hydrogen will be generated at RWE's 300-megawatt electrolysis plant in Lingen, Lower Saxony, expected to be operational by 2027. This initiative is a crucial move in Germany's journey towards decarbonizing its industrial sector, particularly its refineries, to meet greenhouse gas emission reduction targets.
TotalEnergies estimates that the use of green hydrogen will lead to a significant reduction of 300,000 metric tons of CO2 emissions annually at its Leuna refinery, equivalent to the emissions of 140,000 cars. This marks a pivotal moment in TotalEnergies' efforts to reduce CO2 emissions at its facilities. The agreement is supported by Germany's hydrogen core network, a vast 9,000-kilometer pipeline infrastructure linking hydrogen production sites with industrial consumers.
Government officials, including Stephan Weil and Dr. Reiner Haseloff, have commended the agreement for its role in advancing Germany's hydrogen economy. TotalEnergies has also issued tenders for 500,000 metric tons of green hydrogen annually across Europe, aligning with its strategy to decarbonize refineries. To ensure a reliable supply, RWE Generation will utilize the hydrogen storage facility in Gronau-Epe, operated by RWE Gas Storage West, scheduled to commence operations in 2027.
Traditionally, refineries rely on hydrogen derived from fossil natural gas, leading to high CO2 emissions. The shift to green hydrogen is a vital step in helping refineries align with Germany's emission reduction objectives.
Topics
Green Hydrogen
Renewable Energy
Energy Transition
Pipeline Infrastructure
Government Support
European Market
Industrial Decarbonization
CO2 Emission Reduction
Refinery Sector
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