On Thursday, Shell (NYSE: SHEL) revealed plans to build a 100-megawatt renewable hydrogen electrolyzer in Germany, the company’s second unit in Europe, which will help reduce carbon emissions at its refineries.
The company said that the Refhyne II electrolyzer at the Rheinland refinery will start operating in 2027 and produce up to 44,000 kilograms per day of renewable hydrogen to partially decarbonize site operations.
In the longer term, renewable hydrogen from the project could be directly supplied to help lower industrial emissions in the region as customer demand evolves, Shell said in a statement.
In the Netherlands, Shell (NYSE: SHEL) is currently constructing the Holland Hydrogen I project with a capacity of 200 megawatts, one of Europe’s largest renewable hydrogen plants under construction.
The final investment decision to progress with Refhyne II comes after several low-carbon projects suffered setbacks under the leadership of CEO Wael Sawan.
Since Sawan took office in January 2023, Shell has scrapped and sold renewable and hydrogen projects, retreated from European and Chinese power markets, and sold refineries, vowing to focus on the most profitable operations, primarily oil and gas, in a push to improve profit.
The British company plans to invest $10 billion to $15 billion in 2023-2025 to support the development of low-carbon energy.
In 2023, the company invested $5.6 billion in low-carbon energy, around 23% of overall capital spending.
(Source: Reuters)
Kevin Putnam is a financial journalist and editor based in New York. He specializes in editing news and analysis related to U.S. stock market.
