Shell Commits to 100MW Electrolyser Project in Germany.
Shell has made a final investment decision (FID) to advance a 100MW proton-exchange membrane (PEM) hydrogen electrolyser project at the Shell Energy and Chemicals Park Rheinland in Germany.
The project, known as REFHYNE 2, will use renewable electricity to produce up to 44,000 kilograms of renewable hydrogen per day, aimed at partially decarbonising the site’s operations. The electrolyser is expected to begin operations in 2027.
Supportive policies, including the European Union’s binding targets for renewable hydrogen use and the German Federal Government’s regulatory framework, have enabled the REFHYNE 2 project. The project has also secured funding from the EU’s Horizon 2020 research and innovation program.
Huibert Vigeveno, Shell’s Downstream, Renewables, and Energy Solutions Director, stated, “Today’s announcement marks an important milestone in delivering our strategy of more value with fewer emissions. Investing in REFHYNE 2 is a visible demonstration of our commitment to the hydrogen economy, which will play an important role in helping to decarbonise Shell’s operations and customer products.”
Renewable hydrogen from REFHYNE 2 will be used at the Shell Energy and Chemicals Park to produce energy products, such as transport fuels with lower carbon intensity.
This initiative will help reduce Scope 1 and 2 emissions at the facility. In the longer term, renewable hydrogen from REFHYNE 2 could be directly supplied to lower industrial emissions in the region as customer demand evolves.
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The project will benefit from the experience Shell and its partners, ITM and Linde, have gained in developing, constructing, and operating other renewable hydrogen projects in Europe. REFHYNE 2 follows the success of the 10MW PEM electrolyser REFHYNE 1, which started operations in 2021 using the same technology.
The capital investment for REFHYNE 2 will be included within Shell’s cash capital expenditure guidance, and this project exceeds the internal rate of return (IRR) hurdle rate for Shell’s Renewables & Energy Solutions business as outlined during Capital Markets Day 2023.
