Shell is close to making FIDs on a number of hydrogen projects in northwest Europe, according to CEO Ben van Beurden.

The company already operates the 10MW Refhyne electrolyser to supply green hydrogen to its Rheinland refinery near Cologne and recently started a 20MW electrolyser in Zhangjiakou in China—one of the three largest electrolysers in the world.

These projects are eventually expected to scale up to 100MW and 60MW respectively. They currently give Shell a c.10pc share of global electrolyser capacity.

“Hydrogen is a very topical part of the energy system, and we are probably the ones who are making most progress on the ground,” says van Beurden.

“I’m very excited that the lead position that we currently have may well triple or quadruple in the next few months or quarters to come,” he adds.

Shell is developing three projects by itself in northwest Europe and is part of a fourth in the UK.

200MW – Holland Hydrogen 1 capacity

It is pursuing plans to build a 200MW electrolyser—named Holland Hydrogen 1—in the Dutch Port of Rotterdam, powered by the 760MW Hollandse Kust Noord offshore wind project in the North Sea.

“That [project] is making very good progress with very good understandings with government on how it would work, and how the infrastructure buildout would happen, and the support we would get for using that hydrogen for our refining processes in the interim period but then ultimately make available for heavy-duty road transport,” says van Beurden.

“We have strategy partnerships with Daimler trucks and Volvo trucks to ensure that we can seed demand in those markets,” he adds.

Shell has long maintained it plans to make FID on Holland Hydrogen 1 some time in 2022.

Development pipeline

The firm is also developing the NortH2 project with its consortium partners, gas network operator Gasunie and port operator Groningen Seaports. The plan would see an electrolyser in the port of Eemshaven in the Netherlands, powered by North Sea windfarms. Shell expects to conclude the feasibility study in the project this year, meaning it is a less likely candidate for FID than Holland Hydrogen 1.

The firm is also planning to build an electrolyser at a renewable hydrogen innovation and production hub in Emmen in the Netherlands. Hydrogen will be consumed by mobility customers or transported via pipeline to nearby industry. Shell has said the on-site hydrogen refuelling station will be ready by 2022.

“The lead position we currently have may well triple or quadruple in the next few months or quarters to come” Van Beurden, Shell

The firm’s has also signed an agreement with German utility Uniper to progress plans to produce blue hydrogen at Uniper’s Killingholme power station site in the east of England.

The Humber Hub Blue Project recently passed the eligibility criteria for phase two of the government’s cluster sequencing process. Successful projects are expected to take FIDs from 2024 and be operational from 2027.

Transition report

In its energy transition progress report earlier this year, Shell said it was looking to take FIDs on 300MW of electrolyser capacity in 2022.

By 2025, Shell expects around half of its total expenditure to be on low- and zero-carbon products and services—including biofuels, hydrogen, power, charging for electric vehicles, carbon capture and storage, nature-based solutions, chemicals and lubricants.

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Author: Tom Young