Green Hydrogen Projects Surge in Germany and the Netherlands
Key Ideas
- Recent green hydrogen projects in Germany and the Netherlands have successfully secured significant funding from state and EU sources, indicating a promising shift towards low-carbon hydrogen.
- Companies like Shell, EWE, TotalEnergies, and RWE are pioneering projects that aim to replace gray hydrogen with green hydrogen, meeting EU quotas and mandates for hydrogen use in various sectors.
- These projects involve the construction of large-scale electrolyzer facilities, strategic partnerships with green steel manufacturers, and utilization of renewable energy sources like offshore wind to produce green hydrogen.
- Despite the infancy of the low-carbon hydrogen industry in Europe, companies are optimistic about the potential for green hydrogen projects to create value, reduce carbon emissions, and comply with renewable fuel requirements.
Several sizable green hydrogen projects have recently received final investment decisions in Germany and the Netherlands, marking a significant shift in the low-carbon hydrogen landscape. These projects, led by companies like Shell, EWE, TotalEnergies, and RWE, have secured substantial funding from state and EU sources and are strategically positioned to replace gray hydrogen in various industries. For example, Shell's Refhyne II project in Germany aims to produce 16,000 tons of green hydrogen annually to replace gray hydrogen in its refinery. Similarly, EWE's 330 MW hydrogen project in northwestern Germany involves electrolyzer schemes that will provide green hydrogen for local green steel manufacturing. The OranjeWind project in the Netherlands, led by TotalEnergies and RWE, will utilize offshore wind to produce green hydrogen for decarbonizing refineries. Despite being a nascent industry, players like Total are exploring different strategies to adopt green hydrogen, such as tolling agreements and investments in electrolyzers. The overall sentiment towards these green hydrogen projects is positive, with a focus on creating value, reducing carbon emissions, and meeting renewable fuel requirements.