Equinor and RWE to cooperate on energy security and decarbonization
Equinor and RWE have agreed to work together to develop large-scale value chains for low carbon hydrogen.
The partners aim to replace coal fired power plants with hydrogen-ready gas fired power plants in Germany, and to build production of low carbon and renewable hydrogen in Norway that will be exported through pipeline to Germany.
On 5 January, the two companies signed a memorandum of understanding (MoU) to jointly develop large-scale energy value chains, building on the partnership between Norway and Germany and the long-term relationship between Equinor and RWE. The cooperation has these main building blocks:
Construction of new gas power plants (CCGTs), contributing to Germany’s phase-out roadmap for coal. Equinor and RWE will jointly own the CCGTs which initially will be fueled with natural gas and then gradually use hydrogen as fuel with the ambition of fully to be run on hydrogen when volumes and technology are available.
Building production facilities in Norway to produce low carbon hydrogen from natural gas with CCS. More than 95 percent of the CO2 will be captured and stored safely and permanently under the seabed offshore Norway.
Joint development of offshore wind farms that will enable production of renewable hydrogen as fuel for power and other industrial customers in the future.
“Through this collaboration we will strengthen the long-term energy security for Europe’s leading industrial country while at the same time offer a viable route to a necessary energy transition for hard to abate industries. The collaboration has the potential to develop Norway into a key supplier of hydrogen to Germany and Europe. This is a unique opportunity to build a hydrogen industry in Norway where hydrogen also can be used as feedstock to domestic industries,” says Anders Opedal, Equinor’s CEO and president.
“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. Blue hydrogen in large quantities can make a start, with subsequent conversion into green hydrogen supply. This is exactly what we are driving forward with our partnership – providing the industries with relevant quantities of hydrogen. In addition our planned investments into hydrogen-ready gas-fired power plant will ensure security of supply in a decarbonized power sector,” says Dr. Markus Krebber, CEO of RWE.
