Together with VERBUND AG, EWE AG is developing one of the leading integrated hydrogen hubs in Europe in the Wesermarsch district with the project CHC Elektrolyse JadeWeser and is thus making a key contribution to the formation of an integrated European hydrogen economy. The work will be undertaken by an autonomous project company.
The core of this one of the prominent integrated hydrogen hubs in Europe is an electrolyzer that has a capacity of up to 500 megawatts and a planned output of about 50,000 metric tonnes of green hydrogen per year. The facility is going to be linked to the future core hydrogen network and is projected to begin delivering green hydrogen to the industry and the mobility sector as well as the energy sector from 2032. The combination of production, storage, and grid connection makes the facility a project of significant strategic value for the rapid deployment of hydrogen in Germany and Europe.
It is well to be noted that the emergence of the joint venture by EWE Hydrogen GmbH and VERBUND Green Hydrogen GmbH takes place in an increasingly unified hydrogen market. The initial few years of market expansion have shown that projects can be carried out successfully – especially those that, in addition to their technical proficiency, have adequate infrastructure, safe locations, strong financing collaborators, and concrete marketing possibilities. Therefore, EWE and VERBUND are combining their complementary expertise along the entire hydrogen value chain in this joint venture. The partners already have about 400 megawatts of hydrogen projects in development or operation.
According to Stefan Dohler, CEO of EWE AG, “With this joint venture, we are laying the groundwork for the implementation of one of the most strategically important hydrogen projects in northern Germany. However, regulatory adjustments, such as the EU’s RFNBO requirements, are still necessary for a successful market ramp-up. Furthermore, strong partnerships are also essential. VERBUND and EWE have gained extensive experience in large-scale hydrogen projects over the past few years, which we are now combining. This will contribute significantly to the successful implementation of the project.”
European partnership for security of supply and decarbonization
It is worth noting that the JadeWeser Electrolysis project is a very much key part of the collaborative hydrogen strategy of both companies and has a uniform European focus. Its proximity to the German core hydrogen network and of course, its potential incorporation into future European hydrogen corridors make a significant contribution to the safety of supply, the convergence of European energy markets, and the accomplishment of European climate goals. At the same time, the production when it comes to green hydrogen by way of using domestic renewable energy sources reinforces European self-sufficiency and in the long term decreases its dependency on fossil fuel imports. In this way the project contributes to the development of a robust, autonomous as well as highly competitive European energy system.
Says Michael Strugl, CEO of VERBUND AG, “The energy transition requires strong European partnerships. Through this joint venture, we are combining the strengths of two established energy companies and laying the groundwork for a secure and competitive supply of green hydrogen. For us, JadeWeser is a key building block of a future European hydrogen economy.”
Prime Location Benefits Market for Ramp-up
The partners say the project’s particular advantage is the standard of its location as well as infrastructure. Long-term sites in the southern part of Nordenham in the Wesermarsch region have been secured. Nearby, a 380 kV grid connection with high capacity – and the possibility of expansion to the gigawatt range – as well as the future core hydrogen network. And then there is the guaranteed water supply, the current industrial infrastructure, and the closeness to key industrial and mobility as well as import corridors like the future A20 highway.
Another key benefit is indeed the access to hydrogen storage caverns and along with it, close proximity to the associated storage infrastructure. This would allow hydrogen to be stored in a flexible manner and made available at any time in the future. This increases security of supply and creates the basis for a market-oriented and competitive hydrogen supply.
Opines Jost Ahrens, Managing Director of VERBUND Green Hydrogen GmbH, “The JadeWeser project is creating one of the best-positioned hydrogen projects in Europe in terms of infrastructure. The site symbolizes the energy transition in Europe: next to a former nuclear power plant, an industrial hub for the production of green hydrogen is taking shape. This creates excellent conditions for an economical and secure hydrogen supply.”
Integrated Approach Increases Chances of Success
As per Tobias Moldenhauer, Managing Director of EWE HYDROGEN GmbH, “With CHC Electrolysis JadeWeser, we can contribute to building a high-performance hydrogen economy and actively drive forward the development of a large-scale hydrogen project together. At the same time, it is clear that market ramp-up does not depend solely on technological advances.”
Projects that have long development as well as investment cycles require good regulatory, economic, and infrastructure conditions. More specifically, these include the costs for electricity procurement and the present additional burden of RFNBO requirements and grid fees, as well as indirect emission costs. There is, however, a need for incentives for the profitable utilization of hydrogen in industry, such as via suitable tools to make up for the cost differential.
“Building a hydrogen economy is capital-intensive, a long-term endeavor, and involves various risks—especially during the market ramp-up phase. This makes reliable strategic partnerships all the more important. With VERBUND, we have a partner at our side who shares our conviction: green hydrogen will be a central building block for the decarbonization of industry. Together, we want to tap into this potential through a strong joint venture,” adds Moldenhauer.