Shell's Ambitious Hydrogen Plans: A New Era in Renewable Energy

Shell announced plans to build a 100-megawatt renewable hydrogen electrolyser in Germany to reduce emissions at its refineries, marking its second unit in Europe. The Refhyne II electrolyser is set to start operations in 2027, producing up to 44,000 kg of renewable hydrogen daily. This follows Shell's recent strategic focus on profitable operations under CEO Wael Sawan.

Shell announced on Thursday that it will construct a 100-megawatt renewable hydrogen electrolyser in Germany, marking the company's second such venture in Europe. This new electrolyser, named Refhyne II, will be situated at the Rheinland refinery and is expected to begin its operations in 2027. The facility aims to produce up to 44,000 kilograms of renewable hydrogen per day, aiding in the partial decarbonisation of operations at the site.

Shell revealed that, over the long term, renewable hydrogen from the Refhyne II project could be supplied directly to help reduce industrial emissions in the region, as demand for greener solutions evolves. In parallel, Shell is building the Holland Hydrogen I project in the Netherlands, which will have a capacity of 200 megawatts, making it one of the largest renewable hydrogen plants currently under construction in Europe.

The decision to move forward with Refhyne II comes in the wake of several low-carbon projects facing hurdles under the leadership of CEO Wael Sawan. Since taking office in January 2023, Sawan has overseen the abandonment and sale of some renewable and hydrogen projects, a withdrawal from European and Chinese power markets, and the sale of refineries. Nevertheless, Shell has committed to investing between $10 billion and $15 billion from 2023 to 2025 to advance low-carbon energy technologies, having already invested $5.6 billion in 2023 alone, with 23% allocated to capital spending.

(With inputs from agencies.)