09 Nov 2021 | 15:05 UTC

Norsk Hydro and Shell to explore green hydrogen projects

Highlights

Hydrogen to help decarbonize own operations

Supply hydrogen to customers in range of industries

Produce and supply renewable hydrogen in Europe

Norway-based aluminum producer Norsk Hydro said Nov. 9 its hydrogen company Hydro Havrand has agreed with Royal Dutch Shell unit Shell New Energies to explore the potential of producing hydrogen from renewable electricity.

Hydro said that with green hydrogen it could further reduce the footprint of its low-carbon aluminum, as aluminum production is highly energy-intensive, while adding that it could use the hydrogen to help decarbonize its own as well as and Shell's own operations, and to supply customers in heavy industries, the maritime sector and road transport.

Under the memorandum of understanding, both companies will jointly produce and supply hydrogen produced from renewable electricity in hubs centered around Hydro and Shell's own business, the company said.

Both companies have started initial work under the agreement and will look to identify opportunities to produce and supply renewable hydrogen to Hydro, Shell and the broader market from locations in Europe, with the intention to expand into additional regions and locations over time, Hydro said.

Replacing natural gas for heating purposes in aluminum production with renewable hydrogen will contribute toward Hydro's global commitment to reduce its greenhouse gas emissions by 30% by 2030, it said.

"Hydro Havrand can leverage a broad set of competencies within Hydro, and through its total offering help other industrial players succeed with their energy transitions," said Hydro Executive Vice President for Energy Arvid Moss said in a statement.

Shell's Executive Vice President for Renewables & Energy Solutions, Elisabeth Brinton, said: "Hydrogen will play a key role in decarbonizing hard-to-electrify sectors, which is vital for accelerating progress toward a net-zero emissions future."

"By leveraging each other's strengths and capabilities, Hydro Havrand and Shell can work toward a shared goal of establishing integrated hydrogen value chains and ultimately a strong global market for hydrogen," Brinton said.