July 25, 2024 [Reuters]- Turbine and engine maker Siemens Energy will build a 280-megawatt (MW) green hydrogen electrolysis system for Northern German utility EWE (LANDWE.UL) which is expected to begin operating in 2027, the two companies said on Thursday.

The awarding of the contract is one of a flurry of deals after Germany last week handed 4.6 billion euros ($4.98 billion) of EU-approved subsidies to a series of projects to supply secure and sustainable hydrogen on its road to net-zero carbon emissions.

Hydrogen, provided it is produced via the electrolysis of water using renewable electricity, can help the transition to a lower carbon economy.

Benefiting from its status as an important project of common interest (IPCEI), the plant in the city of Emden will provide up to 26,000 metric tons of green hydrogen a year, replacing around 800,000 tons of carbon dioxide (CO2) annually if, for example, used in steelmaking.

EWE said it received 500 million euros of national and state-level IPCEI funds for four hydrogen projects, but did not specify the value of the Siemens Energy contract.

The Emden plant will be one of Europe’s biggest, equalling the size of all currently operational electrolysers in Germany, and compared to the 10,000 MW targeted for German green hydrogen capacity by 2030 in a national industry strategy.

“This project is an important element in the ramp-up of the green hydrogen industry in Germany,” said Anne-Laure de Chammard, a board member at Siemens Energy.

EWE chose Siemens Energy after a 12-month selection process. The stacks, the heart of the electrolysis, will be produced at Siemens Energy’s Berlin site. EWE is separately developing related transport and storage elements.

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