Shell takes FID on 100-MW electrolysis project in Germany

Shell plc (LON:SHEL) has taken the final investment decision for the 100-MW Refhyne II electrolyser project in Germany which will be developed to produce renewable hydrogen for the decarbonisation of the oil and gas giant’s chemicals park Rheinland.

The facility at Shell Deutschland GmbH’s Energy and Chemicals Park Rheinland is expected to become operational in 2027, Shell said on Thursday.

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The proposed electrolyser will use polymer electrolyte membrane technology (PEM) and will produce up to 44,000 kg of green hydrogen on a daily basis. The fuel will be used in the manufacturing of lower carbon intensity fuels, which will partly lower the chemicals park’s carbon footprint. In the longer term, the output could be supplied directly to industrial customers in the region.

Apart from Shell, the consortium behind the Refhyne II project consists of ITM Power Trading Ltd, ITM Power Germany HmbH, Linde GmbH, Tecnalia, ERM, Sintef AS and Concawe. The scheme will be a follow-up of Refhyne I, a 10-MW PEM hydrogen electrolyser facility opened in 2021 at the Rheinland site near Cologne.

In 2021, Refhyne II was awarded a EUR-32.4-million (USD 35.2m) grant under the European Union's Horizon 2020 research and innovation programme.

(EUR 1.0 = USD 1.085)