Siemens Energy has secured a contract from the German utility EWE to supply a 280-megawatt electrolysis system. The plant, located in Emden, Germany, is set to begin operations in 2027 and is expected to produce up to 26,000 tons of green hydrogen annually for various industrial applications in the region. This green hydrogen has the potential to replace fossil fuels, which could lead to a reduction of approximately 800,000 tons of CO2 emissions per year, particularly in the steel industry, according to the media report.
The electrolysis facility is part of EWE’s large-scale hydrogen initiative, “Clean Hydrogen Coastline,” which includes four sub-projects. The electrolyzer serves as the core of the hydrogen production plant in Emden, which, along with other essential components like compressors and cooling systems, will have an average power consumption of 320 megawatts over its lifespan. In addition to providing the electrolyzer, EWE and Siemens Energy have signed a ten-year service contract.
The German government and the European Commission have classified this project as a strategic funding initiative, known as an IPCEI project (Important Project of Common European Interest). Last week, the funding decision for this project was handed over to EWE by the Federal Ministry for Economic Affairs and Climate Protection. With the contract signing, EWE and Siemens Energy have promptly commenced implementation.
“This project is a crucial component in scaling up the green hydrogen industry in Germany,” said Anne-Laure de Chammard, Member of the Executive Board of Siemens Energy. “With the long-awaited funding commitments, the German government has provided the final piece necessary to realize strategically important projects like this on a large scale. The swift conclusion of the contract with EWE shows that the industry is prepared to implement these initiatives quickly.”
“EWE is engaged across the entire value chain with its hydrogen projects, from production to transportation and storage. Our location choice in north-west Germany and collaboration with Siemens Energy underscore our focus on both regional and national value creation,” stated EWE CEO Stefan Dohler. After a thorough twelve-month selection process, EWE evaluated ten electrolysis manufacturers globally. “I am pleased to collaborate with Siemens Energy on hydrogen, as the company has been a long-standing partner for EWE in all aspects of our energy infrastructure,” added Dohler.
The electrolyzer from Siemens Energy employs PEM technology, which utilizes electricity to separate water into hydrogen and oxygen via a proton exchange membrane. This technology is especially well-suited for operation with renewable energy due to its flexible ramp-up times. The stacks, which are the core of the electrolyzers, are produced at Siemens Energy’s new gigawatt factory in Berlin.
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