Published by Todd Bush on July 26, 2024
COLOGNE/WESSELING, GERMANY – Shell Deutschland GmbH (Shell) has taken a Final Investment Decision (FID) to progress REFHYNE II, a 100-megawatt renewable proton-exchange membrane (PEM) hydrogen electrolyser at the Shell Energy and Chemicals Park Rheinland in Germany. Using renewable electricity, REFHYNE II is expected to produce up to 44,000 kilograms per day of renewable hydrogen to partially decarbonize site operations. The electrolyser is scheduled to begin operating in 2027.The REFHYNE II project has been enabled by supportive policies, including the European Union’s (EU) binding targets for the use of renewable hydrogen, and the German Federal Government’s regulatory framework. The project has also received funding from the EU’s Horizon 2020 research and innovation programme.
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“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," said Shell’s Downstream, Renewables and Energy Solutions Director Huibert Vigeveno. “Our decision to invest illustrates what can be achieved with the right enabling conditions to deliver competitive projects.”
Renewable hydrogen from REFHYNE II will be used at the Shell Energy and Chemicals Park to produce energy products such as transport fuels with a lower carbon intensity. Using renewable hydrogen at Shell Rheinland will help to further reduce Scope 1 and 2 emissions at the facility. In the longer term, renewable hydrogen from REFHYNE II could be directly supplied to help lower industrial emissions in the region as customer demand evolves.
The project will benefit from the experience Shell and its project partners, ITM Power and Linde, have in developing, constructing, and operating other renewable hydrogen projects in Europe. REFHYNE II follows the success of the 10-megawatt PEM electrolyser REFHYNE I, which started up in 2021 and uses the same technology. Since 2021, preparations have been under way to deliver the detailed engineering plans for REFHYNE II, complete on-site groundworks, and connect to existing infrastructure.
Shell plans to invest $10-$15 billion across 2023-2025 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 total, Shell invested $5.6 billion in low-carbon solutions in 2023, which was 23% of its capital spending.
The capital investment related to REFHYNE II will be absorbed within Shell’s cash capital expenditure guidance, and this project exceeds 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 are ITM Power (Trading) Ltd, ITM Power Germany GmbH, Linde GmbH, TECNALIA, ETM, SINTEF AS, and CONCAWE.
Shell expects that, once operational, hydrogen produced from REFHYNE II will meet the requirements for renewable fuels of non-biological origin (RFNBO) in accordance with current EU legislation.
This investment delivers on Shell’s strategy to repurpose its Energy and Chemicals Parks to provide lower carbon molecules to customers.
In the Netherlands, Shell is currently constructing Holland Hydrogen I with a capacity of 200 megawatts, one of Europe’s largest renewable hydrogen plants under construction.
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