Equinor and RWE, a Germany-based electricity generation company, have agreed to collaborate on developing offshore wind farms capable of producing green hydrogen to establish value chains for low-carbon hydrogen.
The partners want to develop a low-carbon, renewable hydrogen production facility in Norway that will export hydrogen to Germany via a pipeline and replace coal-fired power plants in Germany with gas-fired power plants that remain ready to use hydrogen.
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The memorandum of understanding includes constructing new gas power plants (CCGTs) and contributing to Germany’s coal phase-out programme. Equinor and RWE will jointly control the CCGTs, which will initially be powered by natural gas, then progressively switch to hydrogen as a fuel to run entirely on hydrogen when the volumes and technology are ready.
Anders Opedal, Equinor’s CEO and president, said: “Through this collaboration, we will strengthen the long-term energy security for Europe’s leading industrial country while at the same time offering a viable route to a necessary energy transition for hard-to-abate industries.
“The collaboration [can potentially] develop Norway into a key supplier of hydrogen to Germany and Europe,” continued Opedal. “This is a unique opportunity to build a hydrogen industry in Norway where hydrogen also can be used as feedstock to domestic industries.”
The partners will build facilities in Norway to manufacture low-carbon hydrogen from natural gas using carbon capture and storage. More than 95% of the carbon dioxide will be absorbed and permanently stored under the seabed off the coast of Norway.
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By GlobalDataAccording to Equinor’s statement, the joint development of offshore wind farms will allow the future generation of renewable hydrogen as a fuel for electricity and other industrial clients.
Dr Markus Krebber, CEO of RWE, said: “In order to make progress in the conversion from fossil fuels to hydrogen, there is an urgent need for a rapid ramp up of the hydrogen economy. Blue hydrogen in large quantities can make a start, with subsequent conversion into green hydrogen supply.
“This is exactly what we are driving forward with our partnership – providing the industries with relevant quantities of hydrogen,” added Krebber. “In addition, our planned investments into hydrogen-ready gas-fired power plant will ensure the security of supply in a decarbonised power sector.”
To achieve climate neutrality by 2045, Germany plans to cut its carbon emissions from 1990 to 2030 by 65%, Bloomberg News reported. Norway has set similar goals, including developing floating offshore wind, carbon capture and storage facilities, and electrification of oil and gas installations.
