Contract for steelwork and piping as well as installation work in Emden, Germany.
Milestone for hydrogen project and basis for long-term supply agreements.
- Last major contract package which has been finalized
- Basis for commercial supply contracts
- Signal for ramp-up of hydrogen economy
EWE pushes ahead with the hydrogen economy – Bilfinger awarded major contract by EWE. Bilfinger, which is an industrial services provider, has been awarded by the company to build steelwork, piping and assembly contract for the 320-megawatt hydrogen production plant based out of Emden. Apparently, this contract is one of the largest in the entire ‘Clean Hydrogen Coastline’ project and also the final major contract package after the contracts pertaining to electrolysis and compressors as well as construction work.
The plant ranks among the largest of its type in Europe and reinforces Lower Saxony as an industrial location, creating a basis for new value creation within climate-friendly energy. The facility is going to produce its first green hydrogen for industrial customers beginning late 2027.
It is well to be noted that the award of Steelwork, piping and assembly contract to Bilfinger, which is an experienced system integrator for hydrogen plants, establishes the necessary conditions for further execution of the plant and for the next phase in the market ramp-up, which is the finalisation of long-term supply contracts for green hydrogen.
Basis for tradable hydrogen contracts
The contract award now establishes the most critical cost and planning criteria for the plant. This provides the necessary basis for concrete contract negotiations with the industrial partners. EWE is in close contact with multiple businesses on this subject. The aim is to build dependable and financially viable supply connections for green hydrogen.
Managing Director of EWE HYDROGEN GmbH, Tobias Moldenhauer, says, “By awarding the last major construction contracts, we have fulfilled a crucial prerequisite. We now have a solid foundation and can use it to offer competitive, long-term green hydrogen supply agreements. This is a key step from the project to the market.”
The Emden hydrogen production plant is a component of the IPCEI project – Clean Hydrogen Coastline. With this project, EWE is linking the key components of the hydrogen value chain from production and storage as well as transport to supply.
This establishes a unified framework in Lower Saxony that meets the demand for climate-neutral energy in the industry and creates new economic value in the region.
The conditions of the political framework remain of vital significance.
The market increase still relies on a dependable regulatory framework, regardless of the progress which has been made in execution.
According to Tobias Moldenhauer, “Companies like EWE are already investing across the entire value chain. To ensure these investments can be sustained, we need stable market mechanisms, regulatory certainty, and pragmatic guidelines, particularly at the European level.”
With the recently announced modification of the additionality criteria and the latest decision on an additional expansion of the GHG quota, significant indicators are being set in this regard. Tobias Moldenhauer further adds that “at the same time, there remains a need for action to accelerate the ramp-up of clean technologies and ensure international competitiveness. To this end, investments in projects like ours in Emden must remain economically viable in the future.”
Bilfinger offers considerable knowledge to the project
Bilfinger will provide comprehensive engineering, delivery, setup and commissioning of the primary plant components related to the electrolysis process, the so-called balance-of-plant components. This includes, among other things, many kilometres of piping systems linking different plant sections with steel construction and the incorporation of auxiliary technical facilities.
Opines CEO of Bilfinger Group, Thomas Schulz, “We are pleased to support EWE in the implementation of one of the largest hydrogen initiatives in Europe. With our extensive experience across the entire value chain from production through storage to end use we are making a tangible contribution to tomorrow’s sustainable energy infrastructure. Partnerships like this are crucial for advancing the ramp-up of the hydrogen economy in Germany.”
Notably, this contract award finalises commissioning for all major trades for the facility, with now the focus shifting to implementation.
Funding within the European context
The project Clean Hydrogen Coastline is financed by the European IPCEI program which is an important Project of Common European Interest and happens to be supported by the European Union, the federal government as well as the state of Lower Saxony.