Hydro Havrand, Hydro’s green hydrogen subsidiary, and Shell New Energies Holding Europe B.V. (“Shell”) have agreed to examine the possibility of collaborating on hydrogen production using renewable energy.

The goal is to use the hydrogen to assist Hydro and Shell in decarbonizing their own operations, as well as to serve customers in heavy industries, the maritime industry, and road transport.

Shell and Hydro Havrand signed a memorandum of understanding this week to jointly produce and supply hydrogen generated from renewable energy in hubs centered on Hydro and Shell’s own operations, and where they see significant potential for scaling production for customers in heavy industry and transportation.

The companies have begun preliminary work under the terms of the agreement. They will begin by identifying potential in Europe to create and distribute renewable hydrogen to Hydro, Shell, and the larger market. The plan is to gradually grow into more regions and locales.

By substituting renewable hydrogen for natural gas in aluminum production, Hydro will contribute to its global aim to cut greenhouse gas emissions by 30% by 2030.

“Hydro looks to green hydrogen as a way to reduce our aluminum’s carbon footprint even further, as well as a business opportunity on its own merits in the ongoing decarbonization of the economy. Hydro Havrand can leverage a broad set of competencies within Hydro, and through its total offering help other industrial players succeed with their energy transitions,” says Arvid Moss, Hydro Executive Vice President for Energy.

“Hydrogen will play a key role in decarbonizing hard-to-electrify sectors, which is vital for accelerating progress toward a net-zero emissions future. By leveraging each other’s strengths and capabilities, Hydro Havrand and Shell can work toward a shared goal of establishing integrated hydrogen value chains and ultimately a strong global market for hydrogen,” says Elisabeth Brinton, Shell’s Executive Vice President for Renewables & Energy Solutions.