German utility company RWE and German LNG Terminal GmbH signed an agreement to jointly explore hydrogen opportunities in the country’s northern town of Brunsbuttel.
In a joint statement on Thursday, RWE and German LNG Terminal, the joint venture developing Germany’s first LNG terminal, said they would promote the use of hydrogen produced from renewable sources.
“Hydrogen produced from renewable energy sources is in line with Germany’s goal to become climate-neutral by 2050,' Rolf Brouwer, the managing director of German LNG Terminal GmbH, said.
Recalling a long-term agreement between both companies in September 2018 for a considerable part of the planned terminal’s LNG import capacity, the statement said the companies would now explore green hydrogen possibilities via the planned LNG terminal in Brunsbuttel.
“RWE’s interest in jointly exploring the import of hydrogen in Brunsbuttel proves the strategic importance of the site and the project,” Brouwer said.
According to the statement, domestic production will not be able to meet anticipated future demand, posing the need for hydrogen imports.
It added that LNG import terminals, like Brunsbuttel, can be combined with entry points for liquid hydrogen produced in other regions of the world where wind and solar energy are available at a larger scale and lower cost than in Germany.
RWE and German LNG Terminal are also planning to utilize existing gas pipelines connected to the LNG terminal, which “are perfectly fit to distribute hydrogen locally.”
“LNG can provide Germany with clean and affordable energy today and at the same time contribute to reducing emissions in the maritime and road transport sector as an alternative fuel,” said Javier Moret, global head of LNG at RWE’s trading unit.
Moret stressed that hydrogen will play a key role in the future as a climate-neutral fuel in the energy mix, and added that the agreement with German LNG Terminal prepares both companies for this next step.
By Sibel Morrow