New York — RWE has signed a letter of intent with chemical company OCI to supply green hydrogen to its methanol production facility in Delfzijl, the Netherlands, the German power company said Nov 6.
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The agreement feeds into RWE's Eemshydrogen green hydrogen project in Eemshaven where, in a first phase, RWE is to develop a 50 MW electrolyzer fed by its 162 MW Westereems onshore wind farm.
The electrolyzer capacity could be scaled up depending on market developments and regulations, the company said.
A final investment decision on the project was expected in 2021, with hydrogen production from 2024. RWE said the letter of intent with OCI contributed to the economic viability of the project.
RWE also intended to supply green hydrogen to Evonik's chemical plant in Delfzijl. The volume of green hydrogen to be supplied to the two companies was under evaluation.
"We have the know-how and the renewables plants to produce green hydrogen ourselves. And thanks to our energy trading unit, we can operate electrolyzers optimally in line with market's requirements," said RWE Generation CEO Roger Miesen.
The Eemshydrogen project aimed to "demonstrate the feasibility of an integrated hydrogen value chain with vast scaling potential," RWE said.
The project formed part of the wider Investment Plan Hydrogen Northern Netherlands initiative, which sees green hydrogen becoming cost-competitive with conventional hydrogen in the medium term.
"Scaling up local green hydrogen becomes cost-competitive with grey hydrogen by 2030-35, and remains cost competitive with shipping imports of green hydrogen while securing energy supply," the initiative said in an Oct. 30 report.
RWE said the Eemshydrogen project could lead to over 250,000 mt of CO2 savings over its lifetime.
S&P Global Platts assessed the price of green hydrogen (PEM electrolysis including capex, the Netherlands) at Eur3.45/kg Nov. 4. This was above the comparable alkaline electrolysis assessment of Eur2.85/kg and substantially above the Eur1.5732/kg for blue hydrogen (steam methane reforming with carbon capture and storage, including capex and carbon price).