TotalEnergies, RWE ink green hydrogen deal to decarbonise Leuna refinery

TotalEnergies has taken a significant step toward reducing carbon emissions at its Leuna refinery in Germany by securing a long-term green hydrogen supply agreement with RWE. Under the terms of the deal, RWE will provide 30,000 metric tons of green hydrogen annually to TotalEnergies’ refinery for 15 years, starting in 2030. This partnership marks the largest green hydrogen contract ever signed with an electrolyser in Germany and is expected to prevent 300,000 metric tons of CO2 emissions each year—an amount equivalent to the emissions produced by approximately 140,000 cars annually.

The green hydrogen will be produced at RWE’s 300-megawatt electrolysis plant in Lingen, which will use electricity from renewable sources. The hydrogen will be delivered to the Leuna refinery via a 600-kilometre pipeline, ensuring a stable and long-term supply for industrial decarbonisation. This agreement reinforces TotalEnergies’ broader commitment to reducing carbon emissions across its European refining operations and aligns with Germany’s national hydrogen strategy aimed at accelerating industrial decarbonisation.

What Makes This the Largest Green Hydrogen Contract in Germany?

Germany has been actively promoting the use of green hydrogen to transition heavy industries away from fossil fuels. This agreement between TotalEnergies and RWE is a breakthrough in industrial-scale hydrogen adoption, as it represents the largest supply deal involving electrolyser-based green hydrogen in the country. The contract provides TotalEnergies with a stable and scalable green hydrogen source, allowing the refinery to significantly cut its reliance on fossil fuel-derived hydrogen.

With Germany’s greenhouse gas (GHG) quota regulation requiring fuel suppliers to cut emissions by 25% by 2030, refineries must find viable solutions to meet these targets. Hydrogen plays a crucial role in refining operations, and switching to a green hydrogen supply is essential for compliance with evolving environmental policies. By securing a long-term agreement with RWE, TotalEnergies positions itself as a leader in industrial decarbonisation, while RWE strengthens its role as a key player in Europe’s emerging hydrogen economy.

How Will Germany’s Hydrogen Core Network Support the Green Hydrogen Supply Chain?

The success of large-scale green hydrogen projects depends on efficient infrastructure for production, transport, and storage. Germany’s hydrogen core network, a planned 9,000-kilometre pipeline system, will be crucial in enabling the seamless delivery of green hydrogen from production sites to industrial consumers like TotalEnergies’ refinery in Leuna. This network will be phased into operation between 2025 and 2032, repurposing existing natural gas pipelines while constructing new hydrogen transport corridors.

The Leuna refinery will receive its hydrogen supply via a dedicated pipeline from RWE’s electrolysis facility in Lingen. This strategic infrastructure is expected to facilitate widespread industrial adoption of hydrogen, providing a reliable alternative to fossil fuels. Government support and regulatory frameworks are essential for ensuring that the hydrogen backbone is completed on schedule, allowing industries to transition smoothly to clean energy solutions.

How Will Hydrogen Storage Ensure Supply Stability for Industrial Consumers?

One of the challenges of scaling up green hydrogen production is the variability of renewable energy sources. Electrolysers must operate using electricity generated from wind or solar power in real time, as mandated by EU regulations. To mitigate supply fluctuations, RWE is integrating hydrogen storage capacity at its facility in Gronau-Epe.

RWE Gas Storage West, a subsidiary of RWE, plans to launch this storage facility in 2027, allowing hydrogen to be stored and released as needed. This will ensure that TotalEnergies receives a consistent supply of hydrogen, even during periods of low wind or solar generation. Industrial consumers require predictable energy inputs, and the combination of production, transport, and storage will enhance the reliability of green hydrogen as a primary fuel source for refining operations.

Why Is Green Hydrogen Critical for the Future of Refining?

Hydrogen is a key component in refinery operations, used primarily for desulphurisation and processing crude oil into fuels. Traditionally, hydrogen has been produced from natural gas, a process that generates significant CO2 emissions. By transitioning to green hydrogen, refineries can drastically reduce their carbon footprint while complying with stricter emissions regulations.

TotalEnergies has announced plans to secure 500,000 metric tons of green hydrogen per year across its European operations, with the Leuna refinery playing a crucial role in this strategy. This deal with RWE is an early example of how large energy companies are rethinking their refining processes in response to regulatory pressures and market demand for cleaner energy solutions.

What Does This Mean for the Green Hydrogen Market and Investors?

The agreement between TotalEnergies and RWE signals growing confidence in the green hydrogen market. Investors are closely watching hydrogen developments, as the European Union intensifies its push for renewable energy adoption. Companies that secure long-term supply agreements with industrial customers are in a strong position to drive market growth.

Shares of both TotalEnergies and RWE have remained stable following the announcement, reflecting investor confidence in their long-term energy transition strategies. Analysts predict that similar large-scale hydrogen deals will become more common as industries seek to comply with decarbonisation targets. The success of this agreement could pave the way for future collaborations between energy producers and industrial consumers, accelerating Europe’s shift toward a hydrogen-based economy.

A Milestone for Green Hydrogen and Industrial Decarbonisation

TotalEnergies and RWE’s green hydrogen agreement represents a major milestone for Germany’s energy transition. By securing a 15-year hydrogen supply contract, TotalEnergies is taking proactive steps to decarbonise its refining operations while supporting the development of Germany’s hydrogen economy.

This deal demonstrates the growing viability of green hydrogen as a scalable industrial energy source. With supportive infrastructure, government backing, and corporate investment, hydrogen is set to play a critical role in reducing emissions across energy-intensive industries. As the hydrogen market matures, agreements like this will become key drivers of Europe’s clean energy transformation.