Energy giants TotalEnergies and RWE have announced a groundbreaking agreement that will see RWE supply 30,000 tons of green hydrogen annually to TotalEnergies' Leuna refinery in Germany for a period of 15 years, commencing in 2030. This significant deal represents Germany's largest green hydrogen contract originating directly from an electrolyser and marks a major step towards decarbonising industrial processes in the country.

Source: Hydrocarbon Engineering

The green hydrogen will be produced by RWE at its planned 300-megawatt (MW) electrolyser facility located in Lingen, in northwestern Germany. To ensure efficient delivery, the hydrogen will be transported to the Leuna refinery, situated approximately 600 kilometers away in eastern Germany, via a dedicated pipeline.

This long-term green hydrogen supply is projected to significantly reduce the Leuna refinery's carbon dioxide (CO2) emissions by an estimated 300,000 tons each year. This reduction will make a substantial contribution to TotalEnergies' broader decarbonisation objectives for its European refining operations.

Background:

The agreement underscores the growing momentum behind green hydrogen as a key solution for decarbonising hard-to-abate sectors like refining. Green hydrogen, produced through the electrolysis of water powered by renewable electricity, offers a zero-carbon alternative to traditional hydrogen production methods that rely on fossil fuels.

TotalEnergies has set ambitious targets for reducing the carbon footprint of its European refineries, aiming for a 3 million-ton annual decrease in CO2 emissions by 2030. Securing reliable supplies of green hydrogen is central to achieving this goal. RWE, a leading energy company in Europe, is actively investing in the development of green hydrogen production capacity as part of its own transition towards a cleaner energy future. Large-scale electrolyser projects like the one in Lingen are crucial for bringing down the cost of green hydrogen and making it a competitive alternative to fossil fuels.

Key Perspectives:

Patrick Pouyanné, Chairman and CEO of TotalEnergies, emphasized the strategic importance of this agreement, stating that it "supports TotalEnergies’ ambition to decarbonise its European refineries by 2030" and highlights its role in achieving the company's decarbonisation targets.

Markus Krebber, CEO of RWE, hailed the deal as a significant milestone in the scaling up of hydrogen solutions. He underscored the importance of such collaborations in driving the development of the hydrogen economy and enabling industrial decarbonisation.

TotalEnergies' Broader Decarbonisation Strategy:

This agreement with RWE is a key component of TotalEnergies' wider strategy to integrate green hydrogen into its European refining network. The company has already secured commitments for over 200,000 tons per year (tpy) of green hydrogen supply for its refineries located in France, Germany (including this latest agreement), Belgium, and the Netherlands. These efforts demonstrate TotalEnergies' proactive approach to embracing cleaner energy sources and reducing the environmental impact of its operations.

The collaboration between TotalEnergies, a major energy consumer, and RWE, a leading energy producer investing in green hydrogen, serves as a powerful example of how partnerships across the energy value chain are essential for accelerating the energy transition and achieving ambitious decarbonisation goals in Europe. The scale of this green hydrogen contract further solidifies the growing confidence in hydrogen as a viable and increasingly competitive solution for industrial decarbonisation.