Shell is looking to take FIDs on 300MW of electrolyser capacity in 2022 as it accelerates the expansion of its clean hydrogen business, the oil major says in its latest energy transition progress report.

The company has so far started up 30MW of electrolyser capacity, with the potential to produce 4,300t/yr of green hydrogen.

“We are looking to take FIDs on ten times this capacity in 2022. We own and operate 10pc of global electrolyser capacity today,” Shell says in the report.

Shell’s portfolio of electrolysers is dominated by a 20MW facility at Zhangjiakou in China’s Hebei province, which started up in January. The plant, a joint venture with local firm Zhangjiakou City Transport Construction Investment Holding Group, is scheduled to be scaled up to 60MW starting in the next two years, Shell says.

“In 2022, we expect that around one-third of our total expenditure will be on low- and zero-carbon products and services” Van Beurden, Shell

In Europe, Shell started up a 10MW proton-exchange-membrane electrolyser at its Rheinland complex near Cologne last year, with plans to scale up to 100MW.

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.

“In 2022, we expect that around one-third of our total expenditure will be on these low- and zero-carbon products and services,” CEO Ben van Beurden says in the report.

Shell reiterates that it expects returns of “more than 10pc” on its clean energy investments.

From the first quarter of 2022, Shell will report separately on the performance of its renewables and energy solutions business, it says in the report.

Norwegian energy company Equinor also released its energy transition plan this week—the firm aims to supply hydrogen to 3-5 major industrial clusters by 2035, aiming for a 10pc share of Europe’s clean hydrogen market by that date.

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Author: Stuart Penson