Shell Advances Renewable Hydrogen Efforts with 100-megawatt Electrolyser in Germany

In a significant stride towards a sustainable future, Shell Deutschland GmbH (Shell) has announced the Final Investment Decision (FID) for the REFHYNE II project. This initiative involves the construction of a 100-megawatt renewable proton-exchange membrane (PEM) hydrogen electrolyser at the Shell Energy and Chemicals Park Rheinland in Germany. 

The project is set to use renewable electricity to produce up to 44,000 kilograms per day of renewable hydrogen, aimed at partially decarbonizing site operations. The electrolyser is expected to be operational by 2027.

Related: Shell to Build 100-megawatt Renewable Hydrogen Electrolyser in Germany

A Boost from Supportive Policies

The REFHYNE II project has gained momentum thanks to supportive policies, including the European Union’s (EU) binding targets for renewable hydrogen usage and the German Federal Government’s regulatory framework. The project also benefits from funding through the EU’s Horizon 2020 research and innovation program. These supportive measures have created an enabling environment for Shell to move forward with this ambitious project.

Huibert Vigeveno, Shell’s Downstream, Renewables, and Energy Solutions Director, expressed the significance of this development: “Today's announcement marks an important milestone in delivering our strategy of more value with less emissions. Investing in REFHYNE II is a visible demonstration of our commitment to the hydrogen economy, which will play an important role in helping to decarbonize Shell’s operations and customer products.” He further emphasized, “Our decision to invest illustrates what can be achieved with the right enabling conditions to deliver competitive projects.”

Benefits of Renewable Hydrogen

The renewable hydrogen produced by REFHYNE II will be utilized at the Shell Energy and Chemicals Park to create energy products such as transport fuels with lower carbon intensity. This initiative will significantly reduce Scope 1 and 2 emissions at the facility. In the long run, renewable hydrogen from REFHYNE II could be directly supplied to lower industrial emissions in the region, catering to evolving customer demand.

Shell and its project partners, including ITM Power and Linde, bring a wealth of experience in developing, constructing, and operating renewable hydrogen projects in Europe. REFHYNE II builds upon the success of REFHYNE I, a 10-megawatt PEM electrolyser that began operations in 2021, using the same technology. Since 2021, preparations have been ongoing to deliver detailed engineering plans for REFHYNE II, complete on-site groundworks, and connect to existing infrastructure.

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Strategic Investments and Future Plans

Shell plans to invest between $10 and $15 billion from 2023 to 2025 to support the development of low-carbon energy solutions, including e-mobility, low-carbon fuels, renewable power generation, hydrogen, and carbon capture and storage. In 2023 alone, Shell invested $5.6 billion in low-carbon solutions, accounting for 23% of its capital spending.

The capital investment for REFHYNE II will be integrated within Shell’s cash capital expenditure guidance. This project surpasses the internal rate of return (IRR) hurdle rate for Shell’s Renewables & Energy Solutions business, as outlined during Capital Markets Day 2023.

Key project partners for REFHYNE II include ITM Power (Trading) Ltd, ITM Power Germany GmbH, Linde GmbH, TECNALIA, ETM, SINTEF AS, and CONCAWE. Shell expects that once operational, the hydrogen produced from REFHYNE II will meet the requirements for renewable fuels of non-biological origin (RFNBO) in accordance with current EU legislation.

Delivering on Shell’s Strategy

This investment aligns with Shell’s strategy to repurpose its Energy and Chemicals Parks to provide lower carbon molecules to customers. In addition to REFHYNE II, Shell is also constructing Holland Hydrogen I in the Netherlands, which will have a capacity of 200 megawatts, making it one of Europe’s largest renewable hydrogen plants under construction.

Shell is not only investing in large-scale projects like REFHYNE II but also focusing on smaller, yet impactful initiatives that contribute to their overall strategy of achieving more value with fewer emissions. These efforts are crucial in helping to decarbonize the energy sector and meet global sustainability targets.

The REFHYNE II project exemplifies Shell’s commitment to advancing the hydrogen economy and underscores the potential of renewable hydrogen in reducing industrial emissions. By leveraging their extensive experience and collaboration with key partners, Shell is well-positioned to drive significant advancements in the renewable hydrogen sector.

With the implementation of REFHYNE II, Shell is taking a bold step towards a cleaner, more sustainable future, reinforcing their role as a leader in the transition to low-carbon energy solutions.