Shell, Mitsubishi Heavy Industries (MHI), Vattenfall and municipal company Warme Hamburg have signed a letter of intent to develop a green hydrogen project in Germany.
The partners initially plan a 100MW electrolyser at the Hamburg-Moorburg power plant site and then further development into a so-called green energy hub is planned.
They will explore the extent to which the existing infrastructure of the Moorburg location can be used for the production of energy from renewable sources.
Subject to a final investment decision and according to the current state of planning, once the site has been cleared, the production of green hydrogen is anticipated in the course of 2025.
The partners intend to apply for funding under the EU Important Projects of Common European Interest programme.
This should take place in the first quarter of 2021 with the submission of a first outline of the project.
The four partner companies said the site has ideal conditions for further use, as it is connected to both the national 380,000 volt transmission network and the 110,000 volt network of the City of Hamburg.
In addition, overseas ships can call at the location directly and use the quay and port facilities as an import terminal.
The municipal gas network company also intends to expand a hydrogen network in the port within 10 years and is already working on the necessary distribution infrastructure.
Numerous potential customers for green hydrogen are located near the site, the partners said.
Moorburg was the site of a gas-fired power plant operated by Hamburgische Electricitats-Werke, and Vattenfall had been operating a coal-fired power plant there since 2015.
Commercial operation of the coal plant was terminated after the power plant won a bid in the auction for the nationwide coal phase-out in December 2020.
A decision by the transmission system operator on the system relevance of the plant is expected in March 2021.
Hamburg and Vattenfall are striving to partially clear areas of the site as soon as possible for the project to produce green hydrogen and the development of a green energy hub.
Vattenfall head of strategic development Andreas Regnell said: “The production of fossil free hydrogen is one key to the decarbonisation of the industry and the transport sectors.
“Vattenfall wants to enable fossil free living within one generation and we have high ambitions to grow within renewable energy production in the markets where we operate.
“In this project we can contribute with our expertise and experience and the unique Moorburg site that has the infrastructure that is necessary for large scale production of hydrogen.
“We are therefore pleased that we can support the city and the industrial location of Hamburg in implementing their ambitious climate goals.”
Shell German chief executive Fabian Ziegler said: “In the future, green hydrogen will play a very important role in the energy system and therefore also for us.
“We keep an eye on the development of the entire value chain for hydrogen; from the entry into electricity production from offshore wind to the expansion of capacities for green hydrogen production as well as to the supply for mobility or transport applications and other industries.
“To achieve this, we need to and we want to collaborate with strong partners. We consider this project of the consortium of four together with the city of Hamburg to be exemplary.”
MHI president and chief executive of energy systems Kentaro Hosomi said: “We are looking forward to having the opportunity to apply our engineering and technology expertise to realise this project together with our partners.
“The establishment of a green hydrogen hub that is fully integrated into Hamburg’s industrial infrastructure would show Europe and the world that the hydrogen economy is real and can make a significant contribution to the decarbonisation of the energy system and heavy industry.”
Warme Hamburg and Gasnetz Hamburg supervisory boards chairman Jens Kerstan said: “For Hamburg as a city that embraces the energy transition, this agreement is a vital step.
“At the Moorburg site, we will be producing green hydrogen on a large scale in collaboration with experienced partners from industry, while at the same time establishing a green energy hub for climate-friendly energy. This is a bold venture that now needs to be filled with life.
“This project will be a major lever for reaching our climate goals. The gas pipeline networks in the port and around Moorburg are now being expanded to accommodate hydrogen and to facilitate supplies to industry and large businesses.
“Our hydrogen future is now taking shape, and Hamburg intends to be at the forefront here.
“The Hamburg Senate supports these efforts, and Hamburg’s public companies play a decisive role in this.”