Shell has taken a final investment decision (FID) to progress a 100MW electrolyser project in Germany.
The company will install a proton-exchange membrane (PEM) hydrogen electrolyser at the Shell Energy and Chemicals Park Rheinland.
Using renewable electricity, REFHYNE 2 is expected to produce up to 44,000 kilograms per day of renewable hydrogen to partially decarbonise site operations.
The electrolyser is scheduled to begin operating in 2027.
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.
The project has also received funding from the EU’s Horizon 2020 research and innovation programme.
“Today’s announcement marks an important milestone in delivering our strategy of more value with less emissions.
“Investing in REFHYNE II 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,” said Shell’s Downstream, Renewables and Energy Solutions Director Huibert Vigeveno.
He added: “Our decision to invest illustrates what can be achieved with the right enabling conditions to deliver competitive projects.”
Renewable hydrogen from REFHYNE 2 will be used at the Shell Energy and Chemicals Park to produce energy products such as transport fuels with a lower carbon intensity.
Using renewable hydrogen at Shell Rheinland will help to further reduce Scope 1 and 2 emissions at the facility.
In the longer term, renewable hydrogen from REFHYNE 2 could be directly supplied to help lower industrial emissions in the region as customer demand evolves.
The project will benefit from the experience Shell and its project partners, ITM and Linde, have 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 up in 2021 and uses the same technology.
The capital investment related to REFHYNE 2 will be absorbed 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.