EWE and Siemens Energy build 280 MW electrolysis plant for green hydrogen

FRANKFURT (Reuters) – Turbine and engine maker Siemens Energy will build a 280 megawatt (MW) electrolysis plant to produce green hydrogen for northern German energy supplier EWE, which is expected to go into operation in 2027, the two companies said on Thursday.

The contract award is one of numerous agreements after Germany last week provided 4.6 billion euros ($4.98 billion) in EU-approved subsidies for a series of projects to provide a secure and sustainable supply of hydrogen on the path to net-zero carbon emissions.

Hydrogen – when produced by electrolysis of water using renewable energy – can support the transition to a lower-carbon economy.

Due to its status as an Important Project of Common Interest (IPCEI), the plant in the city of Emden will supply up to 26,000 tonnes of green hydrogen annually, replacing around 800,000 tonnes of carbon dioxide (CO2) annually when used in steel production, for example.

EWE said it had received €500 million in federal and state IPCEI funding for four hydrogen projects, but did not disclose the value of the contract with Siemens Energy.

The Emden plant will be one of the largest in Europe. It is the same size as all electrolyzers currently in operation in Germany. In comparison, the German plant is expected to reach a capacity of 10,000 MW for green hydrogen by 2030 as part of a national industrial strategy.

“This project is an important building block for the ramp-up of the green hydrogen industry in Germany,” said Anne-Laure de Chammard, member of the Board of Management of Siemens Energy.

EWE chose Siemens Energy after a twelve-month selection process. The stacks, the heart of the electrolysis plant, are produced at Siemens Energy’s Berlin site. EWE develops the associated transport and storage elements separately.

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(Reporting by Vera Eckert, editing by Kirsten Donovan)