TotalEnergies and RWE Agree One of the World’s Biggest Green Hydrogen Deals | OilPrice.com
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Breaking News:
Germany’s biggest utility RWE will supply green hydrogen to France’s oil and gas supermajor TotalEnergies in a 15-year deal from 2030, in one of the largest such agreements globally.
RWE to supply around 30,000 metric tons of green hydrogen annually to TotalEnergies from 2030 to 2044, the German utility giant said on Wednesday. The green hydrogen from RWE will be used in TotalEnergies’ Leuna refinery in Germany to reduce the plant’s carbon emissions.
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The offtake agreement for green hydrogen is the largest quantity of climate-neutral hydrogen ever contracted from an electrolyzer in Germany, RWE said.
The green hydrogen will be produced at RWE’s 300-megawatt (MW) electrolysis plant in Lingen, western Germany. The agreement makes Total’s refinery in Leuna an anchor customer for RWE’s electrolysis plant.
“The agreement is a signal for the German market because fuel suppliers such as refineries are encouraged to gradually reduce their greenhouse gas emissions over time,” RWE said.
The deal with RWE comes weeks after TotalEnergies and Air Liquide said that they plan to invest a combined more than $1.09 billion (1 billion euros) in two electrolyzer projects to produce green hydrogen in the Netherlands, as part of the French supermajor’s efforts to slash emissions from its refineries in northwest Europe.
Per the agreement, the companies will set up a 50/50 joint venture, which will build and operate a 250-MW electrolyzer near the Zeeland refinery.
In the other joint project, TotalEnergies has signed a tolling agreement for 130 MW to be dedicated to the production of 15,000 tons per year of green hydrogen at Air Liquide’s 200 MW ELYgator electrolyzer project in Maasvlakte, for the TotalEnergies platform in Antwerp.
TotalEnergies’ plans for more green hydrogen production and one of the projects seeking subsidy support come as analysts warn that green hydrogen will not become cost-competitive for a long time.
Green hydrogen will struggle to compete at price level with gray hydrogen made from natural gas until at least 2050—much longer than previously anticipated, research firm BloombergNEF said in December 2024.
By Tsvetana Paraskova for Oilprice.com
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