Siemens starts construction of 8.75 MW hydrogen plant in Bavaria

Siemens has started construction of an 8.75 MW electrolyzer plant in Germany to be operational in summer 2023, the engineering company said July 9.

The PEM electrolyzer at Wunsiedel in Bavaria is to produce 1,350 mt/year of hydrogen using only renewable electricity.

"The WUN H2 project is an important contribution to implementing Bavaria's hydrogen strategy," Bavaria's economy minister, Hubert Aiwanger, said.

Siemens Smart Infrastructure is the contractor, while Siemens Financial Services (SFS) is holding a 45% share in the operating company WUN H2 with Riessner Gase (45%) and local municipal utility SWW Wunsiedel (10%), it said.

The statement did not provide financial details.

The hydrogen will be shipped by truck to local and regional end-customers with the plant also helping to ease power grid bottlenecks and provide flexibility for the grid, it said.

The site (Energiepark Wunsiedel) already hosts an 8 MW battery.

A public hydrogen filling station for trucks and buses may be added later.

Europe's biggest electrolyzer -- a 10 MW unit at Shell's Rheinland refinery -- launched July 2.

S&P Global Platts assessed the cost of renewable hydrogen via PEM electrolysis production based on Dutch front-month power (including capex) at Eur6.51/kg ($7.7/kg) on July 9.