RWE and TotalEnergies in 15-year offtake agreement for green hydrogen

TotalEnergies and Germany’s largest utility provider RWE have tied up for the purchase of green hydrogen over a period of 15 years. The agreement stipulates that TotalEnergies will purchase around 30,000 tonnes of green hydrogen per year from RWE for its refinery in Leuna (Saxony-Anhalt) from 2030. This is the largest quantity of hydrogen ever contracted from an electrolyser in Germany, it adds.

The agreement is a signal for the German market because fuel suppliers such as refineries are encouraged to gradually reduce their greenhouse gas emissions over time. Using 30,000 tonnes of green hydrogen in a refinery saves 300,000 tonnes of C02/year. That’s how much 140,000 cars emit on average per year.

Lower Saxony is leading the way in this area in Germany: 50% of the EU-approved production of green hydrogen in Germany is in Lower Saxony, and 20% of the hydrogen core network is being realised in Lower Saxony.

TotalEnergies needs significant quantities of green hydrogen to decarbonise its refineries in Europe. The company has invited tenders for 500,000 tonnes/year across Europe. The 30,000 tonnes that have been contractually agreed upon will be produced at RWE’s 300-megawatt electrolysis plant in Lingen (GET H2 Nukleus), which will go into operation by 2027.

RWE operates its electrolysers with electricity from renewable energy sources. Under EU law, these electrolysers may only be operated with renewable electricity generated in the same hour as the hydrogen. In order to be able to reliably supply the contractually agreed hydrogen even at times when there is little sun and wind, RWE Generation will use booked capacities of the hydrogen storage facility in Gronau-Epe. A subsidiary of RWE, RWE Gas Storage West, plans to put this facility into operation in 2027.

Refineries already use large quantities of hydrogen today. This mainly comes from fossil natural gas, which causes high CO2 emissions. In Germany, fuel suppliers are encouraged to gradually reduce the greenhouse gas emissions (GHG quota) generated by their fuels, for example by 25% by 2030.The use of green hydrogen is one way for refineries to prevent CO2 emissions and thus meet their GHG quota.

The supply relationship between RWE and TotalEnergies will be facilitated by the German hydrogen core network. This will connect ideal hydrogen production sites, such as Lingen in Lower Saxony, with large centres of industrial hydrogen consumption, such as Leuna. The more than 9,000-km long pipeline network is to be phased into operation between 2025 and 2032 by both repurposing existing gas pipelines and building sections of new pipelines.

Markus Krebber, CEO RWE AG: ”We are proud to have secured the first long-term offtake agreement for green hydrogen of this size with TotalEnergies in Germany. Six months after the investment decision for the construction of the 300-megawatt electrolysis plant in Lingen, we have acquired an important anchor customer in TotalEnergies. This shows that hydrogen works with the right incentives for customers.”

Patrick Pouyanné, Chairman and CEO of TotalEnergies: “We are looking forward to developing further our partnership with RWE, our partner in several offshore wind projects in Germany and the Netherlands. This long-term green contract for green hydrogen marks an important milestone to reducing our CO2 emissions at our Leuna refinery. It will be made possible thanks to the completion of the H2 backbone by German authorities and their efficient support to green H2 customers like our Leuna refinery.”