RWE and TotalEnergies Sign 15-Year Green Hydrogen Supply Agreement in Germany
Key Ideas
  • RWE and TotalEnergies have agreed on a 15-year power purchase agreement for the supply of over 30,000 tons of green hydrogen annually to the Leuna refinery in Germany starting from 2030.
  • TotalEnergies aims to decarbonize its European refineries and has tendered a significant volume of green hydrogen, with RWE's investment in a 300 MW electrolysis plant supporting this goal.
  • The agreement between the two companies highlights the importance of utilizing renewable electricity for hydrogen production, with plans to ensure reliable supply through hydrogen storage facilities and the German central hydrogen grid.
  • The upcoming hydrogen infrastructure in Germany will connect production sites and consumption hubs through a pipeline network, further enhancing the distribution capabilities for climate-neutral hydrogen.
French energy company TotalEnergies and German utility RWE have signed a 15-year green hydrogen purchase agreement, where RWE will supply over 30,000 tons of green hydrogen per year to TotalEnergies’ Leuna refinery in Saxony-Anhalt, Germany, from 2030 to 2044. The agreement is a significant step towards TotalEnergies' decarbonization efforts for its European refineries, with RWE's investment in a 300 MW electrolysis plant in Lingen playing a crucial role. The deal emphasizes the necessity of complying with EU legislation, ensuring that electrolyzers operate with renewable electricity for hydrogen production. RWE plans to guarantee a consistent hydrogen supply by leveraging reserved capacity at the Gronau-Epe hydrogen storage facility, set to be operational in 2027. Through the German central hydrogen grid, RWE will connect its various production sites, like Lingen, with industrial hubs such as Leuna, utilizing a pipeline network spanning over 9,000 km. This development showcases the commitment of both companies to embrace green hydrogen as a key component in the transition to a more sustainable energy future.
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