German utility RWE and Norwegian state-owned Equinor have agreed to work together on the development of low-carbon hydrogen supply for use in Germany’s power generation sector from 2030.

The two companies have signed a wide-ranging memorandum of understanding (MoU) that calls for collaboration on blue and green hydrogen production projects as well as joint investments in hydrogen-ready gas-fired power plants in Germany.

The agreement was announced as the German and Norwegian governments held talks aimed at further strengthening their cooperation on the energy transition, especially on hydrogen supply.

“The collaboration has the potential to develop Norway into a key supplier of hydrogen to Germany and Europe” Opedal, Equinor

Germany has courted numerous potential energy suppliers around the world in recent months as it attempts to replace imports of Russian gas disrupted by the war in Ukraine.

The plans outlined under the MoU are contingent on the development of a proposed hydrogen pipeline project linking Norway and Germany, as well as the installation of downstream infrastructure in the latter.

The Norway–Germany pipeline proposal is being assessed by a consortium led by Equinor and Norwegian gas network operator Gassco. The results of a feasibility study are due in the spring, according to a joint statement from the German and Norwegian governments.

“Norway and Germany will seek to accelerate the necessary framework for a functioning European hydrogen market,” the governments say.

Blue and green

On the supply side, Equinor has the ambition to develop 2GW of blue hydrogen production in Norway by 2030, rising to 10GW by 2038. Provided the Norway–Germany pipeline is in place, Equinor will transport the blue hydrogen, which RWE will purchase and use in hydrogen-ready gas plants, the companies say.

“In order to make progress in the conversion from fossil fuels to hydrogen, there is an urgent need for a rapid ramp-up of the hydrogen economy,” says Markus Krebber, CEO of RWE.

RWE and Equinor will also jointly explore possibilities for green hydrogen production in Norway, Germany and countries adjacent to the proposed hydrogen pipeline, with electrolysers powered by offshore wind expected to feature heavily.

Both companies are already engaged in developing Aquasector, a North Sea project aimed at creating a 300MW offshore windfarm connected to electrolysers.

Hydrogen ready

RWE and Equinor also plan to jointly invest in 3GW of hydrogen-ready gas-fired power generation by 2030. The two companies will aim to reach 100pc hydrogen combustion by the mid-2030s. Equinor will supply natural gas to the plants until the transition to hydrogen is complete.

“Through this collaboration we will strengthen the long-term energy security for Europe’s leading industrial country while at the same time offering a viable route to a necessary energy transition for hard-to-abate industries,” says Equinor CEO Anders Opedal. “The collaboration has the potential to develop Norway into a key supplier of hydrogen to Germany and Europe.”

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Author: Stuart Penson