RWE and Equinor agree on strategic partnership for security of supply and decarbonisation

Equinor and RWE announce partnership to develop dedicated offshore hydrogen projects along the pipeline to gradually ramp-up the renewable hydrogen share of German imports.

The agreement includes large scale projects that will contribute to the European energy supply as well as to the ramp-up of the hydrogen economy in Germany and the EU. In addition, the partnership will strengthen the long-term security of supply of a decarbonised European power sector. 

The investments are contingent on the construction of a hydrogen pipeline between Norway and Germany and a German hydrogen downstream infrastructure. In anticipation of this infrastructure, Equinor and RWE propose a series of investments that would be major building blocks for European hydrogen supply and its utilization in the power sector from 2030 onwards.

“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. The collaboration has the potential to develop Norway into a key supplier of hydrogen to Germany and Europe. This is a unique opportunity to build a hydrogen industry in Norway where hydrogen also can be used as feedstock to domestic industries,” says Anders Opedal, Equinor’s CEO and President.

Markus Krebber, CEO of RWE: “In order to make progress in the conversion from fossil fuels to hydrogen, there is an urgent need for a rapid ramp up of the hydrogen economy. 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 decarbonized power sector.”

RWE and Equinor also plan to jointly invest in flexible hydrogen-ready gas-fired power plants (CCGT) in Germany with a total capacity of 3 gigawatts by 2030. Hydrogen-ready gas-fired power plants are based on technology that is available at scale to balance the fluctuating electricity generated from renewables and electricity demand. 

In accordance with specifications from the German Federal Ministry of Economic Affairs and Climate Protection, the CCGT plants shall be able to reach 50%vol hydrogen combustion at the time of commissioning. The companies will pursue a roadmap to reach 100% hydrogen combustion capability by the mid-2030.

The RWE-Equinor partnership is to secure the fuel supply for their planned CCGT fleet in line with this decarbonisation schedule: For this, Equinor initially plans to supply the natural gas required for the operation of the joint CCGT plants. In order to accomplish the CCGT’s transition towards 100% hydrogen firing, natural gas will in a first step be replaced by low-carbon hydrogen.

In addition, RWE and Equinor will continue to explore joint investments in offshore-wind-only projects in Norway and Germany as well as green hydrogen production in Norway. 

Find out more here.