Shell announced on Thursday plans to construct a 100-megawatt renewable hydrogen electrolyser at its Rheinland refinery in Germany, marking the company’s second such unit in Europe.
This project, named Refhyne II, is set to begin operations in 2027 and aims to produce up to 44,000 kilograms of renewable hydrogen per day, contributing to the decarbonisation of site operations.
In a statement, Shell highlighted the long-term potential of the project to supply renewable hydrogen directly to help lower industrial emissions in the region as customer demand evolves.
The new electrolyser will complement Shell’s ongoing efforts in the Netherlands, where it is constructing the Holland Hydrogen I project, which has a capacity of 200 megawatts and is among the largest renewable hydrogen plants currently under construction in Europe.
A hydrogen electrolyser is a device that uses electricity to split water into hydrogen and oxygen.
The electrolyser will use renewable energy sources to produce “green” hydrogen, which is considered a clean fuel because it generates no carbon emissions when used.
The decision to proceed with Refhyne II comes amid a strategic shift under CEO Wael Sawan, who took office in January 2023.
Under Sawan’s leadership, Shell has re-evaluated its portfolio, scrapping and selling several renewable and hydrogen projects, retreating from European and Chinese power markets, and divesting refineries.
This refocus aims to concentrate on the most profitable operations, primarily oil and gas, to boost profitability.
Despite these adjustments, Shell remains committed to advancing low-carbon energy solutions.
The company plans to invest between $10 billion and $15 billion in low-carbon energy development from 2023 to 2025.
In 2023 alone, Shell invested $5.6 billion in low-carbon energy, with 23% of that amount allocated to capital spending.
