RWE and Shell New Energies partner on decarbonisation and green hydrogen

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A new partnership between German energy firm RWE and Shell New Energies will focus on the development and deployment of green hydrogen and energy decarbonisation solutions to speed up the energy transition.

A Memorandum of Understanding signed enables the two to collaborate on green hydrogen production, distribution and use.

Shell New Energies will also help RWE to decarbonise its gas and biomass-fired power plants in northwest Europe using blue hydrogen in Wales, Germany, and the Netherlands.

The two companies have previously collaborated on hydrogen production as part of the NortH2 initiative in the Netherlands and in Germany and want to leverage their experience to decarbonise hard-to-abate industries in the region through increased production, distribution and use of green hydrogen.

RWE and Shell New Energies will produce green hydrogen using offshore wind energy and industrial regions in northeast of England will be explored as potential sites for the projects.

The energy firms will also jointly explore the development of electrolysers in regions with the greatest potential for capacity production yet are currently difficult to connect to the electricity grid. RWE and Shell will investigate whether, and how, green energy can be transported from such locations to customers via hydrogen pipelines.

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The cooperation comes as demand for green and blue hydrogen is increasing as part of efforts to decarbonise and ensure secure energy supply.

In addition, RWE and Shell intend to evaluate the possible application of green hydrogen in the mobility sector in Germany, the Netherlands, and the UK. A starting point for this could be, for example, the hydrogen station network for heavy trucks which Shell plans to build between Rotterdam, Cologne and Hamburg by 2024.

The two companies will also collaborate on carbon capture, storage and utilisation.

Wael Sawan, director of integrated gas, renewables and energy solutions at Royal Dutch Shell, said: “Both companies are of the opinion that progress towards net-zero emissions needs government policy to support the energy transition and our customers’ needs for low-carbon energy solutions.

“It makes sense for us to evaluate the potential of joint decarbonisation projects and make the best of the global energy experience both companies bring to the table.”

Markus Krebber, the CEO of RWE, added: “Effective climate action needs cross-sector and cross-national cooperation. In our cooperation with Shell, we want to develop solutions that combine new approaches with proven technologies and, above all, can be applied quickly and on a large scale. We will also contribute our special expertise in the development of offshore wind projects as well as the provision of energy in the form of electricity, heat and, in the future, green hydrogen for our customers.”

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