Shell takes FID on 100MW REFHYNE II PEM hydrogen electrolyser in Germany

Shell Deutschland GmbH has made a pivotal move in advancing renewable energy with its Final Investment Decision (FID) to proceed with the REFHYNE II PEM hydrogen electrolyser in Germany. This ambitious project involves constructing a 100-megawatt proton-exchange membrane (PEM) hydrogen electrolyser at the Shell Energy and Chemicals Park Rheinland. Scheduled to commence operations in 2027, REFHYNE II is set to produce up to 44,000 kilograms of renewable hydrogen per day, marking a substantial contribution to the site’s decarbonisation efforts.

REFHYNE II PEM hydrogen electrolyser: Investment driven by supportive policies and funding

The REFHYNE II PEM hydrogen electrolyser benefits from a robust policy framework, including the European Union’s binding targets for renewable hydrogen usage and supportive regulations from the German Federal Government. The European Union’s Horizon 2020 research and innovation programme has also provided crucial funding for the initiative. These factors underscore the project’s alignment with broader European goals for sustainability and energy transition.

Huibert Vigeveno, Shell’s Director of Downstream, Renewables and Energy Solutions, highlighted the strategic importance of the REFHYNE II PEM hydrogen electrolyser. Vigeveno emphasised that the investment is a testament to Shell’s commitment to the hydrogen economy and its broader strategy of reducing emissions while delivering value. He noted that the project exemplifies what can be achieved under conducive conditions, aiming to deliver competitive and impactful outcomes.

Integration and future impact of renewable hydrogen

The renewable hydrogen produced by the REFHYNE II PEM hydrogen electrolyser will play a crucial role at the Shell Energy and Chemicals Park Rheinland. It will be used to manufacture energy products with reduced carbon intensity, thus helping lower Scope 1 and 2 emissions at the facility. In the future, as customer demand evolves, this hydrogen could also be supplied to other industries in the region to further reduce emissions.

The project builds on the success of REFHYNE I, a 10-megawatt PEM hydrogen electrolyser that began operations in 2021. REFHYNE II will leverage the experience gained from REFHYNE I and its partners, including ITM Power (Trading) Ltd, ITM Power Germany GmbH, Linde GmbH, TECNALIA, ETM, SINTEF AS, and CONCAWE. This expertise will be instrumental in the project’s successful implementation.

Shell’s broader investment strategy and future projects

Shell plans to allocate between $10 billion and $15 billion from 2023 to 2025 to develop low-carbon energy solutions, including e-mobility, low-carbon fuels, renewable power generation, hydrogen, and carbon capture and storage. In 2023, Shell invested $5.6 billion in these low-carbon solutions, representing 23% of its capital expenditure.

The capital expenditure for the REFHYNE II PEM hydrogen electrolyser will be integrated into Shell’s cash capital expenditure guidance and meets the internal rate of return (IRR) hurdle rate for the company’s Renewables & Energy Solutions business, as detailed during Capital Markets Day 2023.

In addition to REFHYNE II, Shell is constructing Holland Hydrogen I in the Netherlands, a 200-megawatt renewable hydrogen plant, which is set to be one of Europe’s largest.

REFHYNE II PEM hydrogen electrolyser: A significant milestone for Shell

The REFHYNE II PEM hydrogen electrolyser represents a crucial step in the transition towards sustainable energy. It not only enhances Shell’s capacity to produce renewable hydrogen but also sets a benchmark for future developments in the sector. According to Schmidt, the successful implementation of REFHYNE II could catalyse further investments in renewable hydrogen technology across Europe.