By Christie U.Omonigho
Shell Energy Europe Limited, a subsidiary of Shell plc, says it has signed two separate power purchase agreements (PPAs) in Germany with Nordsee One GmbH and Solarkraftwerk Halenbeck-Rohlsdorf I/II Gmbh. The agreements Shell says will secure a significant proportion of the renewable electricity needed to power the REFHYNE 2 hydrogen electrolyser under construction at the Shell Energy and Chemicals Park Rheinland in Germany.
Under the five-year agreement with Nordsee One according to Shell’s email statement, a joint venture owned and operated by Northland Power and RWE, as Shell offtakes around a third of the output from the 332-megawatt (MW) wind farm. Under a separate 10-year agreement with Solarkraftwerk Halenbeck-Rohlsdorf, Shell’s offtake which will be around 75% of the power generated by a 230 MW solar project currently under construction. A proportion of the power generated by both projects will supply the REFHYNE 2 electrolyser when it starts up in 2027.
EWI Publishers learnt that the 100-MW electrolyser would produce renewable hydrogen which will help to decarbonise energy products, from transport fuels to chemicals. They would be produced at the Shell Energy and Chemicals Park Rheinland and used across Europe. For Shell, using renewable power for hydrogen generation will help to further reduce Scope 1 and 2 emissions at the facility.
“Through these renewable power agreements, we are bringing together our advanced trading capabilities and our Low Carbon Solutions expertise to decarbonise Shell’s operations and customer products with pioneering renewable hydrogen technology,” says Andy Beard, President of Hydrogen Shell. “This is an exciting milestone in progressing the REFHYNE 2 project and showcases Shell’s strategy of delivering more value with less emission.”
“This corporate PPA for carbon free electricity will deliver steady economic and environmental value for all its partners and show the potential for offshore wind to support the decarbonisation of the German industry,” says Till Frohloff, Managing Director of Nordsee One.
Karl-Heinz Remmers, co-CEO of Solarkraftwerk Halenbeck, said; “The Halenbeck project shows that subsidy-free solar power production in Germany and its large-scale industrial use is a reality. Using this electricity to help produce hydrogen for the decarbonisation of fuels and chemical products is a huge step forward. It demonstrates once again that solar power has become a mainstay of Germany’s energy supply.”
Shell says the REFHYNE 2 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. Adding that the project has also received funding from the EU’s Horizon 2020 research and innovation programme.
EWI Publishers learnt that the Shell Energy and Chemicals Park Rheinland provides products to a host of businesses and, ultimately, end-consumers, across Europe. Its products are used to make high-quality fuels, lubricants for electric vehicle fluids and cooling fluids – a market which is expected to grow – as well as paints, cosmetics and electronic components.
Statement highlights key project partners for REFHYNE 2 as ITM Power (Trading) Ltd, ITM Power Germany GmbH, Linde GmbH, TECNALIA, ETM, SINTEF AS, and CONCAWE.
Shell says it expects that, once operational, hydrogen produced from REFHYNE 2 will meet the requirements for renewable fuels of non-biological origin (RFNBO) in accordance with current EU legislation.
Nordsee One began commercial operations in December 2017. Northland Power Inc. holds an 85% ownership interest in the project entity, with the remaining 15% held by RWE.
Halenbeck-Rohlsdorf Solar Power Plant consists of two nearly identical projects and project companies, each with a maximum rated output of 115 megawatts. The project is characterized by the subsidy-free generation of solar power, integrated storage options and targeted optimization of biodiversity. Deutsche Anlagen-Leasing (DAL), a subsidiary of Deutsche Leasing Group and part of Germany’s Savings Banks Finance Group, holds a 50% stake in Solarkraftwerk Halenbeck-Rohlsdorf II GmbH. DAL also structured the project’s debt financing.
Statement further disclosed that REFHYNE 1: At the Shell Energy and Chemicals Park Rheinland in Germany, Shell has built one of the largest hydrogen proton exchange membrane (PEM) electrolysers in the world when it went into operation in mid-2021. It has a peak capacity of 10 MW and produces 1,300 tonnes of hydrogen per year. The electrolyser also helps balance the local power grid, by enabling the refinery to make and store hydrogen when there is surplus power from renewable sources, such as wind. The plant, built by ITM Power, is operated by Shell.
REFHYNE 2: Building on the lessons learned from REFHYNE 1, in 2024 Shell said it took a Final Investment Decision to progress REFHYNE 2, a 100 MW renewable proton-exchange membrane (PEM) electrolyser. Powered by renewable electricity, REFHYNE 2 is expected to produce up to 16,000 tonnes of low-carbon hydrogen per year to partially decarbonise site operations. The electrolyser is scheduled to begin operating in 2027.
Once operational, REFHYNE 1 and 2 alongside Shell’s Holland Hydrogen 1 project in the Netherlands will together provide more than 300 MW of renewable hydrogen production capacity in Europe, and are important platforms for future hydrogen development.
Shell’s Holland Hydrogen 1 project in the Netherlands is expected to be one of the largest renewable hydrogen plants in Europe when it becomes operational in the second half of the decade. The 200 MW electrolyser will be powered by renewable energy from the Hollandse Kust (noord) offshore wind farm. Holland Hydrogen 1 will help to decarbonise production at the Shell Energy and Chemicals Park Rotterdam. In the longer term, the plant could also supply hydrogen to help reduce emissions in transport and industry.