Shell has made a final investment decision to proceed with a 100MW proton-exchange membrane (PEM) hydrogen electrolyser project in Germany. The electrolyser, part of the REFHYNE 2 initiative, will be installed at the Shell Energy and Chemicals Park Rheinland, with operations expected to commence in 2027.
The REFHYNE 2 project aims to produce up to 44,000 kilograms of renewable hydrogen per day using renewable electricity. This hydrogen will be utilized to partially decarbonize site operations.
The project has been supported by policies such as the European Union's binding targets for renewable hydrogen use and the German Federal Government's regulatory framework. Additionally, funding has been provided by the EU's Horizon 2020 research and innovation programme.
“Today's announcement marks an important milestone in delivering our strategy of more value with fewer emissions,” said Huibert Vigeveno, Shell's Downstream, Renewables and Energy Solutions Director. “Investing in REFHYNE II is a visible demonstration of our commitment to the hydrogen economy, which will play an important role in helping to decarbonize Shell's operations and customer products.”
Renewable hydrogen from REFHYNE 2 will be used at the Shell Energy and Chemicals Park to produce energy products, including transport fuels with a lower carbon intensity. The use of renewable hydrogen at Shell Rheinland will help to further reduce Scope 1 and 2 emissions at the facility. Over the longer term, renewable hydrogen from REFHYNE 2 could also be supplied to lower industrial emissions in the region as customer demand evolves.
The project will leverage the experience Shell and its partners, ITM and Linde, have gained from developing, constructing, and operating other renewable hydrogen projects in Europe. REFHYNE 2 follows the success of the 10MW PEM electrolyser REFHYNE 1, which began operations in 2021 using the same technology.
The capital investment for REFHYNE 2 will be included within Shell's cash capital expenditure guidance. The project surpasses the internal rate of return hurdle rate for Shell's Renewables & Energy Solutions business, as outlined during Capital Markets Day 2023.
