German energy giant RWE in key green hydrogen trading deal in South Australia

Australian hydrogen project developer The Hydrogen Utility (H2U) and German energy giant RWE plan to develop a green hydrogen trading scheme between Australia and Germany which would transport green hydrogen produced in South Australia into Europe.

RWE’s hope is that the planned LNG import Terminal in Brunsbüttel, where RWE intends to book capacity, would serve as an ideal location for the future import of green hydrogen into Germany.

“H2 is the perfect long-term solution to decarbonise industry, aviation and the transport of heavy goods,” said Javier Moret, Global Head of LNG at RWE Supply & Trading.

“Australia is one of the countries that has excellent conditions to produce green hydrogen – low cost of production and a stable framework. As a globally active trader of commodities, we have a lot of experience with shipping energy carriers – including Australian LNG – around the globe and see ourselves as a facilitator for global hydrogen trading. ”

H2U is currently developing several hydrogen projects across Australia and New Zealand, including the Eyre Peninsula Gateway project in South Australia where it is currently working towards its 75MW demonstrator plant. It is also looking at the H2-Hub Gladstone project in Queensland, an industrial-scale green hydrogen and ammonia production complex which is planned to integrate up to eight industrial scale process trains.

“H2U is pleased to partner with RWE to explore the possibilities for providing affordable green hydrogen and hydrogen derivatives such as ammonia and synthetic methane to power Germany and Europe’s future,” said Dr Attilio Pigneri, H2U’s CEO.

“We see the trading of green hydrogen to Europe being fully decarbonised using green ammonia as the shipping fuel of the future.

The planned Eyre Peninsula Gateway Project will include a 75MW electrolysis plant which can produce hydrogen for approximately 10,000 tonnes of green hydrogen and 40,000 tonnes of ammonia annually.

The second phase of the project, an expansion hoped to take place throughout the 2020s, could see the project expand to include a 1.5GW electrolyser.

Located in the Cultana/Port Bonython region of the Eyre Peninsula, South Australia, the Eyre Peninsula Gateway Project would further demonstrate the value of Port Bonython as an ideal green hydrogen export hub.

Already the South Australian Government have allocated $38 million in funding to upgrade the existing bulk liquid export facilities at Port Bonython in an effort to prepare for the future export of green hydrogen and ammonia.

“South Australia’s ambition to produce, consume and export green hydrogen is getting global attention, and has great potential to create jobs and sustain long-term investment,” said South Australian Premier Steven Marshall.

“Our intention of net-100% renewable energy generation by 2030 will produce some of the most cost-effective green hydrogen in the world.”

“South Australia has big hydrogen ambitions as we aim to be a national and international exporter of clean power, and this internationally significant project in the Eyre Peninsula will see our state take the lead on the deployment of clean, green hydrogen.”