Shell Energy Europe Limited, a subsidiary of Shell plc, has signed two separate power purchase agreements (PPAs) in Germany with Nordsee One GmbH and Solarkraftwerk Halenbeck-Rohlsdorf I/II GmbH. The agreements will secure a significant proportion of the renewable electricity needed to power the REFHYNE 2 hydrogen electrolyser under construction at the Shell Energy and Chemicals Park Rheinland in Germany.
Under the five-year agreement with Nordsee One, a joint venture owned and operated by Northland Power and RWE, Shell will offtake around a third of the output from the 332-megawatt (MW) wind farm. Under a separate 10-year agreement with Solarkraftwerk Halenbeck-Rohlsdorf, Shell will offtake around 75% of the power generated by a 230 MW solar project currently under construction. A proportion of the power generated by both projects will supply the REFHYNE 2 electrolyser when it starts up in 2027.
The 100 MW electrolyser will produce renewable hydrogen, helping to decarbonise energy products, from transport fuels to chemicals, which are produced at the Shell Energy and Chemicals Park Rheinland and used across Europe. Using renewable power for hydrogen generation will help to further reduce Scope 1 and 2 emissions at the facility.
“Through these renewable power agreements, we are bringing together our advanced trading capabilities and our Low Carbon Solutions expertise to decarbonise Shell’s operations and customer products with pioneering renewable hydrogen technology,” said Andy Beard, President of Hydrogen, Shell. “This is an exciting milestone in progressing the REFHYNE 2 project and showcases Shell’s strategy of delivering more value with less emissions.”
“This corporate PPA for carbon free electricity will deliver steady economic and environmental value for all its partners and show the potential for offshore wind to support the decarbonisation of the German industry,” said Till Frohloff, Managing Director of Nordsee One.
Karl-Heinz Remmers, co-CEO of Solarkraftwerk Halenbeck, said; “The Halenbeck project shows that subsidy-free solar power production in Germany and its large-scale industrial use is a reality. Using this electricity to help produce hydrogen for the decarbonisation of fuels and chemical products is a huge step forward. It demonstrates once again that solar power has become a mainstay of Germany’s energy supply.”
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.
The Shell Energy and Chemicals Park Rheinland provides products to a host of businesses and, ultimately, end-consumers, across Europe. Its products are used to make high-quality fuels, lubricants for electric vehicle fluids and cooling fluids – a market which is expected to grow – as well as paints, cosmetics and electronic components
