FRANKFURT (Reuters) — Siemens Energy will construct a 280-megawatt (MW) green hydrogen electrolysis system for Northern German utility EWE, with operations expected to begin in 2027, the companies announced on Thursday.
This contract is part of a series of recent deals following Germany’s recent allocation of €4.6 billion ($4.98 billion) in EU-approved subsidies for projects aimed at providing secure and sustainable hydrogen, supporting its goal of net-zero carbon emissions.
Green hydrogen, produced through the electrolysis of water using renewable electricity, is key to transitioning to a lower carbon economy. The plant, located in Emden, will generate up to 26,000 metric tons of green hydrogen annually, potentially offsetting around 800,000 tons of carbon dioxide (CO2) if used, for example, in steelmaking.
EWE has received €500 million in national and state-level IPCEI funds for four hydrogen projects but did not disclose the contract value with Siemens Energy.
The Emden plant will be among Europe’s largest, matching the current capacity of all operational electrolysers in Germany, and contributing to the 10,000 MW target for German green hydrogen capacity by 2030 set out in the national industry strategy.
“This project is a crucial step in scaling up the green hydrogen industry in Germany,” said Anne-Laure de Chammard, a board member at Siemens Energy.
EWE selected Siemens Energy after a 12-month evaluation process. Siemens Energy will produce the electrolysis stacks at its Berlin facility, while EWE will focus on developing related transport and storage infrastructure.
