After signing a memorandum of understanding with BlueScope Steel in December 2021, Shell has decided to withdraw from the green hydrogen project.
After evaluating its endeavors, the energy giant is leaving the New South Wales project.
Shell is pulling out of the Australian green hydrogen project after thoroughly evaluating and sketching out all of its plans. The firms entered into a Memorandum of Understanding to explore and develop renewable H2 projects at the steelmaker’s Port Kembla Steelworks in the Illawarra region of New South Wales.
The two businesses had agreed to look into setting up and running a 10 MW prototype electrolyzer. The blast furnace of the BlueScope steel factory will be used as a test bed for the usage of renewable H2. Additionally, they had planned to collaborate with other groups to create an H2 center in the Illawarra region. Along with the H2 and power infrastructure, it would also cover the supply and off-take of H2 and the provision of renewable energy.
However, after giving the idea a closer look, Shell decided to break this green hydrogen agreement.
The Australian steelmaker emphasized that its evaluation of its two green hydrogen projects was still in process and that it would keep collaborating with a range of academic and business organizations on their objectives. The corporation made no hints that it would be halting or slowing down the programs in any way.