Shell, RWE sign green hydrogen pact

Royal Dutch Shell PLC and RWE AG signed a preliminary agreement that would see their respective subsidiaries, Shell New Energies Nl B.V. and RWE Generation SE, collaborate on projects for the production, use and distribution of green hydrogen as well as options to decarbonize RWE's gas- and biomass-fired power plants in northwest Europe.

Shell and RWE signed a memorandum of understanding to identify project options that could be developed toward investment decisions, according to a Nov. 10 news release.

Shell and RWE plan to jointly assess the future development of electrolysis plants to produce green hydrogen and consider locations that have potential pipeline capacity for hydrogen but are difficult to connect to the electric grid. The companies also want to investigate how green energy can be transported to customers via hydrogen pipelines, the release said.

Shell and RWE want to develop green hydrogen solutions for industrial customers, focused on the Shell Energy and Chemicals Park Rheinland, Shell sites in Rotterdam and Moerdijk in the Netherlands, and customers in the immediate area. The two companies also plan to evaluate the potential application of green hydrogen in the mobility sector in Germany, the Netherlands and the U.K., the release added.

"[P]rogress towards net-zero emissions needs government policy to support the energy transition and our customers' needs for low-carbon energy solutions," Wael Sawan, director of integrated gas, renewables and energy solutions at Shell, said in the release.