UK-based chemicals company Ineos plans to invest Eur2 billion ($2.3 billion) in renewable hydrogen production across Europe in the next 10 years, including a 100-MW plant in Germany, the company said in a statement Oct. 18.
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Ineos plans to build production facilities in Norway, Germany and Belgium, with additional investment in the UK and France.
"Green hydrogen represents one of our best chances to create a more sustainable and low carbon world," Ineos Chairman Jim Ratcliffe said.
"Europe is crying out for more investment in green hydrogen and Ineos' announcement today shows our determination to play a leading role in this important new fuel."
The company will first construct a 20-MW electrolyzer for hydrogen production in Norway, powered by renewable electricity.
The project will reduce CO2 emissions by around 22,000 mt/year at Ineos' Rafnes chemicals plant, and act as a hydrogen hub for local transport applications.
Ineos also plans a larger 100-MW electrolyzer at its Koln plant in Germany, where the renewable hydrogen will be used to produce ammonia, reducing CO2 emissions by over 120,000 mt/year.
The company said it would explore production of other e-fuels based on methanol.
Ineos said it was also developing other projects in Belgium, France and the UK.
Ineos already operates electrolysis capacity through its Inovyn business, which produces chlor akali and vinyl products.
Ineos said its experience in storage and handling of hydrogen makes it well placed to take advantage of the growing role for renewable hydrogen in the energy transition.
The company plans to build capacity across its European sites, in addition to partner sites, it said.
Recent record-high gas and power prices have pushed up calculated costs for renewable and low-carbon hydrogen production. But costs are expected to decline rapidly by 2030.
S&P Global Platts assessed the cost of producing renewable hydrogen via alkaline electrolysis in Europe at Eur12.74/kg ($14.75/kg) Oct. 15 (Netherlands, including capex). PEM electrolysis production was assessed at Eur15.17/kg, while blue hydrogen production by steam methane reforming (including carbon, CCS and capex) was Eur5.86/kg.