The German energy utility EWE has awarded Siemens Energy a contract to supply a 280 MW electrolysis system for a green hydrogen project in Emden, Germany.
This project, expected to be commissioned in 2027, aims to produce up to 26,000 tonnes of green hydrogen annually for various industrial applications, including steel production. The electrolysis system will utilize Siemens Energy’s proton exchange membrane (PEM) technology, with the electrolyzer stacks manufactured at Siemens’ new gigawatt factory in Berlin.
The Emden project is a key component of EWE’s €800 million Clean Hydrogen Coastline initiative, which comprises four sub-projects and is part of the Important Project of Common European Interest (IPCEI) framework. This initiative is funded by federal and state resources, highlighting its significance in Germany’s green hydrogen strategy. However, the scale and ambition of this project require a critical examination to assess its viability and alignment with industry benchmarks.
Globally, green hydrogen projects are gaining momentum, with several countries making substantial investments in electrolysis capacity. For instance, the European Union’s hydrogen strategy targets 40 GW of electrolyzer capacity by 2030. In this context, EWE’s 280 MW project, while significant, represents a small fraction of the broader European ambition. Additionally, countries like Australia and Saudi Arabia are planning large-scale hydrogen projects, with capacities exceeding 10 GW, setting high benchmarks for other regions.
While the €800 million Clean Hydrogen Coastline project is heavily funded by public resources, the long-term financial viability of green hydrogen production remains uncertain. The high capital expenditure and operational costs associated with electrolysis technology pose significant economic challenges. Furthermore, the projected average power consumption of 320 MW for the Emden project underscores the need for a stable and affordable renewable energy supply to ensure the project’s sustainability.
EWE’s plans to integrate green hydrogen production with existing infrastructure, such as the Huntorf gas storage facility and the development of the H2 Pipeline Infrastructure Northwest, are commendable. This approach aims to create a comprehensive hydrogen ecosystem in northwestern Germany, facilitating the transition to a hydrogen-based economy. However, the complexity and cost of developing hydrogen pipelines and retrofitting existing facilities should not be underestimated.
The regulatory environment and market dynamics will play a crucial role in the project’s success. Clear and supportive policies, coupled with strong market demand for green hydrogen, are essential for driving investment and scaling production. Germany’s commitment to decarbonization and the EU’s hydrogen strategy provide a favorable backdrop, but uncertainties remain regarding the pace of regulatory approvals and market adoption.
