RWE to Supply Green Hydrogen to TotalEnergies in Major 15-Year Deal
Key Ideas
- Germany's RWE will supply 30,000 metric tons of green hydrogen annually to TotalEnergies from 2030 to 2044.
- TotalEnergies' refinery in Leuna, Germany, will use the green hydrogen to reduce carbon emissions.
- RWE's 300-MW electrolysis plant in Lingen will produce the green hydrogen for this 15-year agreement.
- TotalEnergies and Air Liquide plan to invest over $1 billion in two electrolyzer projects for green hydrogen production in the Netherlands.
Germany's largest utility, RWE, has struck a significant 15-year deal with TotalEnergies to supply around 30,000 metric tons of green hydrogen annually from 2030 to 2044. This green hydrogen will be utilized at TotalEnergies' Leuna refinery in Germany to decrease the plant's carbon emissions. The agreement marks the largest quantity of climate-neutral hydrogen ever contracted from an electrolyzer in Germany. The green hydrogen production will take place at RWE's 300-MW electrolysis plant in Lingen, western Germany, making Total's refinery in Leuna a primary customer. This deal is a positive development for the German market as it encourages fuel suppliers like refineries to progressively lower their greenhouse gas emissions. Additionally, TotalEnergies and Air Liquide are set to invest over $1 billion in two electrolyzer projects in the Netherlands to produce green hydrogen, aligning with TotalEnergies' efforts to reduce emissions from its refineries in northwest Europe. Despite analysts' warnings about the cost competitiveness of green hydrogen compared to gray hydrogen until 2050, these initiatives demonstrate a commitment to sustainable energy practices and emissions reduction in the energy sector.