TES, EWE aim for 500MW German electrolysis project
LONDON(ICIS)–Hydrogen production company Tree Energy Solutions (TES) and German utility EWE signed a Memorandum of Understanding (MoU) to develop a 500MW electrolyser project at Wilhelmshaven Green Energy Hub in Germany by 2028, the companies announced 25 November.
Both TES and EWE intend to build and operate the electrolyser unit, which has potential to expand to 1GW.
The 500-1000MW project therefore has potential to meet 5-10% of the German government’s targeted electrolysis capacity by 2030.
The power supply is likely to be from offshore wind located in the North Sea. ICIS data shows that under the assumption of 4,000 load hours and a 70% electrolyser efficiency, the 500MW electrolyser could produce around 1.4TWh/year of hydrogen.
In the German hydrogen strategy, demand for hydrogen is expected to reach 110TWh by the end of the decade.
ICIS assessed the cost of producing hydrogen using a 10-year PPA for offshore-wind at €6.40/kg on a project breakeven basis on 23 November.
TES CLOSED LOOP HYDROGEN PRODUCTION
The electrolysis project indicates a new approach to the TES portfolio. In the October episode of the ICIS Hydrogen Insights podcast, TES chief technical officer Jens Schmidt spoke to ICIS, explaining the company’s closed loop system.
The closed loop process focuses on producing renewable hydrogen outside of Europe in locations with abundant, low-cost renewable power. The hydrogen is then combined with captured carbon emissions and transported as liquified natural gas to Europe, where it is broken down again into hydrogen.
The carbon emissions are captured during the process and transported back to the hydrogen production point to be reused.
The first imports of renewable hydrogen via the closed loop system are expected around 2027, prior to the potential electrolyser project’s online date.
In the initial phase of the project, TES is targeting 25TWh of energy imports, which includes around 0.5 million tonnes (mt) of hydrogen (roughly 16.65TWh).
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