RWE to Supply TotalEnergies with Green Hydrogen in Major Deal
Key Ideas
- RWE has agreed to supply France's TotalEnergies with around 30,000 tonnes of green hydrogen annually from 2030 in a significant deal.
- The agreement, lasting until 2044, marks the largest amount of carbon-neutral hydrogen ever contracted from a German electrolysis facility.
- This partnership not only supports TotalEnergies in decarbonizing its European refineries but also strengthens the collaboration between the two energy companies in offshore wind projects.
- Despite concerns about high costs, the deal demonstrates the viability of hydrogen with the right incentives, according to RWE CEO Markus Krebber.
Germany's RWE has inked a substantial agreement with France's TotalEnergies to supply approximately 30,000 tonnes of green hydrogen each year starting from 2030. The deal, set to continue until 2044, signifies a significant milestone as it represents the largest volume of carbon-neutral hydrogen ever contracted from a German electrolysis facility. RWE's 300 megawatt electrolysis plant in Lingen, scheduled to commence operations in 2027, will cater to TotalEnergies' Leuna refinery in eastern Germany near Leipzig. While financial details were not disclosed, RWE's CEO Markus Krebber emphasized the effectiveness of hydrogen with appropriate incentives. This collaboration not only aids TotalEnergies in meeting its decarbonization targets for European refineries but also deepens the partnership between the two firms in offshore wind initiatives. Despite skepticism regarding high costs associated with green hydrogen projects, this deal is a testament to the potential benefits of hydrogen as a sustainable energy solution.