Energy majors Equinor ASA (NYSE:EQNR) and RWE AG (ETR:RWE) will partner on supplying blue and green hydrogen from Norway to Germany, where the companies plan to jointly build 3 GW of hydrogen-ready gas-fired power plants by 2030.
The two today signed a memorandum of understanding (MoU) for a strategic cooperation to develop hydrogen flows from Norway to Germany via a pipeline. Norway is currently the largest natural gas supplier to Europe.
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The planned power plants will initially be fueled with natural gas from Equinor, which will be first replaced with blue and then green hydrogen. Equinor intends to build natural gas-based hydrogen production facilities in Norway coupled with carbon capture and storage (CCS). They will inject hydrogen into a pipeline to Germany that is now being evaluated by Gassco, Equinor and third parties.
The partners also plan to jointly develop offshore wind farms along the pipeline to produce renewable hydrogen for power and other industrial clients. It is expected that green hydrogen will gradually replace blue hydrogen in imports to Germany and ultimately fire the companies’ fleet of power plants.
According to RWE’s announcement, the companies will pursue a roadmap to reach 100% hydrogen combustion capability by mid-2030.
“Blue hydrogen in large quantities can be the start, with subsequent conversion into green hydrogen supply. This is exactly what we are driving forward with our partnership – providing the industries with significant quantities of hydrogen. In addition, our planned investments into hydrogen-ready gas-fired power plants will ensure security of supply in a decarbonised power sector,” said RWE chief executive Markus Krebber.
“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,” said Equinor’s chief executive and president Anders Opedal. According to him, the partnership could make Norway a key supplier of hydrogen to Germany and Europe.
Equinor notes that regulatory support mechanisms will be needed for the contemplated infrastructure and projects to become commercially viable.
