Shell, Engie among consortium backing cross-Europe green hydrogen project

Green hydrogen would be produced and liquified in Sines, Portugal, before being shipped to Rotterdam for distribution. Image: Vopak.

Shell and Engie are among the companies leading a consortium established to develop a green hydrogen ecosystem in Europe.

The two energy majors are joined by gas shipping firm Anthony Veder and tank storage expert Vopak, the consortium looking to establish a green hydrogen production facility in the Sines port industrial zone in Portugal. Hydrogen would then be liquified and shipped to Rotterdam for distribution and sale.

Shell and Engie are to collaborate across the “full value chain” for the project, the companies said, while Anthony Veder and Vopak will focus on shipping, storage and distribution.

The consortium’s aim will be to assess the potential to produce, transport and store around 100 tonnes of hydrogen per day, before exploring the potential to scale this up.

The consortium has further applied for the project to receive Important Projects of Common European Interest (IPCEI) status from the European Union and has received support from the governments of both Portugal and the Netherlands.

In a statement, Shell said that more certainty was needed for customers of liquid hydrogen, specifically policy instruments with the potential to cover any cost increases for end users.

While still comparatively nascent, Europe’s green hydrogen economy is continuing to build a head of steam with a growing number of market entrants looking to help deliver on the continent’s target of deploying 40GW of green hydrogen electrolysers by 2030.

Such electrolysis capacity will cause a sharp increase in power demand, with the European Union’s green hydrogen strategy of 2020 outlining how up to 120GW of new renewables capacity would be needed to sate demand.  

Shell is pursuing a number of green hydrogen projects in Europe meanwhile, having earlier this month committed to building a 200MW electrolyser at the port of Rotterdam, however this project will largely be powered through onshore wind.

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