Shell steps back from Aussie green hydrogen projects with BlueScope

Shell Plc (LON:SHEL) is drawing back from the planned green hydrogen projects in New South Wales with Australia’s BlueScope Steel Ltd (ASX:BSL) following a detailed scoping and assessment of the initiatives.

Shell and the Australian steel maker signed a memorandum of understanding (MoU) in December 2021 to explore and develop renewable hydrogen projects at BlueScope’s Port Kembla Steelworks in the Illawarra region of New South Wales.

The partners agreed to study the construction and operation of a 10-MW pilot electrolyser to test the use of green hydrogen in the blast furnace at BlueScope’s steel plant. They also planned to collaborate with other organisations to develop a “hydrogen hub” in the Illawarra region, including hydrogen supply and off-take, renewable energy supply and hydrogen and electricity infrastructure.

"Shell evaluates projects such as these based on commercial and strategic considerations. As part of this process, Shell concluded the proposed projects were not a strategic fit," a spokeswoman for the company told Renewables Now.

The spokeswoman noted that Shell will continue to pursue hydrogen opportunities both in Australia and globally.

Earlier this week, BlueScope released its annual report which says the following: "[...] Shell will now pursue its involvement in this project as a supporting partner rather than lead partner."

The Australian company ensured that it is making progress in the assessment of the two projects and continues to work with a range of industry and research organisations on the plans.

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