RWE Secures €124.9m Grant for Green Hydrogen Project in Dutch Eemshaven

The Eemshydrogen initiative by RWE has secured a funding commitment of €124.9 million from the Netherlands Enterprise Agency (RVO). Eemshydrogen entails constructing a 50-megawatt electrolysis facility at RWE's Eemshaven site to generate green hydrogen. RWE intends to power the electrolyser using green electricity sourced from its Westereems wind farm, situated approximately 5 kilometers from the Eemshaven power plant location.

The Netherlands aims to achieve climate neutrality by 2050, aligning with European climate objectives. Green hydrogen is pivotal in this endeavor, prompting the government to outline targets in the Climate Agreement: to establish an electrolysis capacity of 3-4 gigawatts (3000–4000 megawatts), along with ample storage facilities and infrastructure, by 2030. As of late 2022, the government has revised these goals, now aiming for 8 gigawatts (8000 megawatts) of electrolysis capacity by 2032.

In support of advancing renewable hydrogen production and utilization, the Dutch government has established various subsidies and financing avenues, including the Upscaling Fully Renewable Hydrogen Production via Electrolysis (OWE) subsidy scheme. RWE secured this grant in the initial bidding round, demonstrating its commitment to advancing hydrogen technologies.

Sopna Sury, Chief Operating Officer of Hydrogen at RWE Generation, expressed enthusiasm about the development, highlighting its significance. The funding serves as a critical element in ensuring the economic feasibility of the project and accelerating the growth of the hydrogen market in Groningen and surrounding areas. Through the provision of clean hydrogen, particularly to sectors such as transportation and chemical manufacturing, RWE's Eemshaven facility will contribute to lowering carbon emissions for industrial enterprises across North-Western Europe.

RWE aims to finalize a financial investment decision (FID) for the Eemshydrogen project by the conclusion of 2024.

A critical condition for this decision is the timely establishment of essential infrastructure connections, including the national hydrogen backbone, facilitating the transportation of green hydrogen to the market. RWE has already secured environmental and building permits for Eemshydrogen and is actively engaging with potential off-takers. Following the FID, contracts will be awarded to suppliers for the necessary equipment and construction of the electrolysis plant. The Eemshydrogen facility is slated to commence operations in 2027.

Green hydrogen stands as a cornerstone of RWE's investment strategy, with a commitment to channel 55 billion euros into expanding its green portfolio to 65 gigawatts worldwide by 2030. This initiative encompasses the construction of two gigawatts of electrolysis capacity within RWE's primary markets by 2030. The company actively engages in all facets of the hydrogen value chain. Leveraging conducive regulatory environments, supportive schemes, and market potential, RWE undertakes the development, construction, and operation of electrolysers, while also fostering import partnerships.

In collaboration with its partners, RWE is spearheading more than 30 hydrogen initiatives globally, with a primary focus on North-Western Europe and North America. In the United Kingdom (UK), RWE is advancing plans to establish a green hydrogen production facility on its property adjacent to Pembroke Power Station. Meanwhile, in Germany, the authority in Oldenburg has authorized the construction and operation of electrolysers at RWE's gas-fired power plant site in Lingen.

In the Netherlands, RWE is exploring additional opportunities to install electrolysers for supplying green hydrogen, particularly in regions like Rotterdam and Zeeland.