Equinor and RWE form decarbonisation partnership
Equinor and RWE have agreed to work together to develop large-scale value
chains for low carbon hydrogen. The partners aim to replace coal fired
power plants with hydrogen-ready gas fired power plants in Germany, and
to build production of low carbon and renewable hydrogen in Norway that
will be exported through pipelines to Germany.
The cooperation has several main building blocks including the joint development
of offshore wind farms in Norway and Germany that will enable production
of renewable hydrogen as fuel for power and other industrial customers
in the future.
Furthermore, the two companies aim to construct new hydrogen-ready gas-fired
power plants (CCGTs), contributing to Germany’s phase-out roadmap for
coal. Equinor and RWE will jointly own the CCGTs which initially will be
fueled with natural gas and then gradually use hydrogen. The CCGT are aimed
to have a total capacity of 3 GW by 2030.
The partners also plan on building production facilities in Norway to produce
low carbon hydrogen from natural gas with CCS. More than 95 percent of
the CO2 will be captured and stored permanently under the seabed offshore
Norway.
The investments are contingent on the construction of a hydrogen pipeline
between Norway and Germany and a German hydrogen downstream infrastructure.
“Through this collaboration we will strengthen the long-term energy
security for Europe’s leading industrial country while at the same time
offer a viable route to a necessary energy transition for hard to abate
industries. The collaboration has the potential to develop Norway into
a key supplier of hydrogen to Germany and Europe. This is a unique opportunity
to build a hydrogen industry in Norway where hydrogen also can be used
as feedstock to domestic industries,” said Anders Opedal, Equinor’s
CEO and president.
“In order to make progress in the conversion from fossil fuels to hydrogen,
there is an urgent need for a rapid ramp up of the hydrogen economy. Blue
hydrogen in large quantities can make a start, with subsequent conversion
into green hydrogen supply. This is exactly what we are driving forward
with our partnership providing the industries with relevant quantities
of hydrogen. In addition our planned investments into hydrogen-ready gas-fired
power plant will ensure security of supply in a decarbonized power sector,”
said Dr. Markus Krebber, CEO of RWE.