RWE to Supply TotalEnergies with Green Hydrogen in Major Deal
Key Ideas
- RWE, Germany's biggest utility, will supply TotalEnergies with 30,000 tonnes of green hydrogen annually from 2030 to 2044, marking a significant deal in the sector.
- The hydrogen, produced using renewable energy, will be sent from RWE's electrolysis plant in Lingen to TotalEnergies' Leuna refinery near Leipzig.
- The agreement strengthens the collaboration between the two companies, aiding TotalEnergies in its decarbonisation efforts for European refineries.
- This move supports the shift towards greener fuels, as hydrogen produced through electrolysis leaves only water and oxygen as byproducts when burned.
Germany's largest utility company, RWE, announced an agreement to supply French oil major TotalEnergies with approximately 30,000 tonnes of green hydrogen per year starting from 2030 until 2044. This deal, one of the sector's most significant, will see RWE providing carbon-neutral hydrogen from its German electrolysis facility to TotalEnergies' Leuna refinery in eastern Germany, facilitated by a 300-megawatt electrolysis plant in Lingen. The partnership deepens the cooperation between the two energy giants, focusing on offshore wind projects and aiding TotalEnergies in its goal to decarbonise European refineries. Green hydrogen, produced through renewable electricity, is considered environmentally friendly as it only leaves water and oxygen as byproducts when burnt. The agreement is a step towards promoting greener fuels and reducing carbon emissions in the energy sector. The financial terms of the deal were not disclosed, but RWE's CEO Markus Krebber highlighted that it demonstrates the viability of hydrogen with the right incentives.