Shell has announced plans to build a new green hydrogen plant in the Netherlands, dubbed Holland Hydrogen I.
SHELL announced that it has made the final investment decision to build a new green hydrogen facility in the Netherlands.
Dubbed Holland Hydrogen I, the oil giant said that once operational in 2025, the facility, to be built as part of the Maasvlakte 2 development in the Port of Rotterdam, will be “the world’s largest renewable hydrogen plant of Europe”.
According to Shell, a 200 MW electrolyser powered by an offshore wind farm partly owned by the company, will generate up to 60,000 kg of renewable hydrogen every day.
“Holland Hydrogen I shows how new energy solutions can work together to meet society’s need for cleaner energy. It is also another example of Shell’s efforts and commitment to becoming a net-zero emissions company by 2050,” said Anna Mascolo, Executive Vice President, Emerging Energy Solutions at Shell. “Renewable hydrogen will play a central role in the energy system of the future and this project is an important step in helping hydrogen realize this potential.”
Renewable hydrogen produced at the plant will be used to power the Shell Energy and Chemicals Park Rotterdama large biofuels facility capable of producing 820,000 t/year, via the HyTransPort pipeline.
Stretching 32 km underground, HyTransPort is a new hydrogen pipeline crossing the port of Rotterdam. Due to start construction in 2023, once completed the pipeline will be part of the hydrogen infrastructure of the Netherlands and will eventually connect to Chemelot in Limburg, North Rhine-Westphalia in Germany and other European regions.
Shell’s expansion into low-carbon hydrogen production comes against a backdrop record profits in the first quarter of 2022 by £8 billion (US$9.1 billion), driven by rising oil and gas prices. That’s nearly triple the £2.7 billion the company reported in the same quarter last year.
Although Shell plans to make progress in renewable energy, it depends on gas and oil to fund the company’s investments in low- and zero-carbon energy, said Ben van Beurden, CEO of Shell, during the recent Aurora Energy Summit in Oxford, UK. .
While discussing the evolution of Shell’s portfolio and how the energy transition to greener fuels “needs to go much faster”, van Beurden said Shell would play a leading role in this acceleration, but said noted that this cannot happen all at once.
Subject to board approval, van Beurden said Shell UK plans to invest between £20 billion and £25 billion in the UK in the development of low- and zero-carbon energy products and services.
This includes investments in natural gas, to help strike the right balance between energy security and the transition to net-zero emissions, van Beurden said, as well as a considerable share going to renewable electricity from wind. and solar.
“The world needs an energy system that provides a secure, reliable, sustainable and affordable energy supply. This means that Shell will continue to supply oil and gas for many years to come. All over the world, and also in the UK,” he added.