Starting in 2030, energy giant RWE aims to supply Leuna refinery with 30,000 tons of green hydrogen annually, a move poised to reshape the hydrogen market in Germany. The contract with TotalEnergies marks a significant commitment to reduce carbon emissions, highlighting the potential of hydrogen in heavy industries.
The green hydrogen will be produced at RWE’s facility in Lingen, Lower Saxony, which is anticipated to have a 300 MW capacity by 2027. The plant is expected to produce up to 5.6 tons of hydrogen per hour, underscoring the scalability of green hydrogen solutions within industrial applications. The logistical undertaking involves transporting the hydrogen from Lingen to Leuna via a yet-to-be-constructed core hydrogen network, relying heavily on pipeline infrastructure to ensure steady supply. An additional buffer will be established with a hydrogen storage solution in Gronau, North Rhine-Westphalia, to mitigate supply disruptions.
According to RWE CEO Markus Krebber, this venture with TotalEnergies represents the first long-term offtake agreement of its size in Germany, reinforcing green hydrogen’s role in decarbonizing the refining industry. TotalEnergies expects a significant reduction in its carbon footprint from the Leuna refinery, estimating an annual saving of 300,000 tons of CO2 attributed to the switch to green hydrogen. Existing hydrogen usage in refineries predominantly relies on fossil-derived sources, notably contributing to CO2 emissions.
The transition to green alternatives is thus not just an environmental imperative but also a step towards long-term operational sustainability yet faces infrastructural and financial challenges. The agreement posits a ‘signal character’ for Germany’s energy market, encouraging fuel providers to align their operations with emission reduction mandates. Notably, the strategic importance of the initiative extends to regional economic implications, as emphasized by Saxony-Anhalt’s and Lower Saxony’s leaders.
The positioning of Saxony-Anhalt and Lower Saxony as pivotal players in the hydrogen economy not only enhances their industrial landscape but also fosters innovation and job creation. Lower Saxony’s contribution is underscored by its extensive involvement in hydrogen production and infrastructure, indicating a regional competitive advantage, with 50% of EU-approved green hydrogen production in Germany being located there, and 20% of the hydrogen core network realized within its borders.
This expansion is pivotal as Germany pushes towards a greener energy landscape, especially as global markets increasingly evaluate climate impacts and seek sustainable alternatives. However, the successful implementation hinges on timely infrastructural development and the effective integration of hydrogen into existing energy frameworks. The project’s evolution will thus be closely monitored by both industry experts and policymakers, as it could serve as a blueprint for other regions aiming to transition towards sustainable energy practices.
