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' Leuna refinery from 2030 to 2044, aiming to reduce carbon emissions.
  • The offtake agreement represents the largest quantity of climate-neutral hydrogen ever contracted from an electrolyzer in Germany, highlighting a major step towards sustainability.
  • TotalEnergies and Air Liquide plan to invest over $1 billion in two electrolyzer projects in the Netherlands, signaling a significant commitment to green hydrogen production in Europe.
  • Despite challenges, such as cost competitiveness with gray hydrogen from natural gas, the push for green hydrogen aligns with TotalEnergies' efforts to reduce emissions and support climate goals.
Germany's largest utility, RWE, has entered a substantial 15-year agreement with France's TotalEnergies to supply green hydrogen starting in 2030. RWE will provide around 30,000 metric tons of green hydrogen annually to TotalEnergies' Leuna refinery in Germany to aid in reducing the plant's carbon emissions. This deal marks a significant milestone as the largest quantity of climate-neutral hydrogen ever contracted from an electrolyzer in Germany. The green hydrogen will be produced at RWE's 300-megawatt electrolysis plant in Lingen, western Germany, with TotalEnergies' Leuna refinery becoming a key customer. Additionally, TotalEnergies and Air Liquide are investing over $1 billion in two large electrolyzer projects in the Netherlands to further green hydrogen production. These initiatives align with TotalEnergies' ambition to mitigate emissions from its refineries in Europe. Despite challenges, such as cost competitiveness with gray hydrogen, the commitment to green hydrogen underscores the partners' focus on sustainability and climate objectives.
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