Hydrogen firm HH2E announces second major plant in Germany
26/01/2023 06:00
By Christoph Steitz
FRANKFURT, Jan 26 (Reuters) - Energy firm HH2E plans to
build a second major hydrogen production plant in Germany that
could be scaled up to more than 1 gigawatts (GW) by 2030 and
cost more than 1 billion euros ($1.1 billion), the company said.
The plant is to be built in the German state of Saxony and
will be co-funded by HH2E and UK-based shareholders Foresight
Group FSGF.L and HydrogenOne Capital Growth HGEN.L , it said,
adding a final investment decision was expected in 2023.
In a first step, around 230 million euros will be spent to
build a 100 megawatt production plant by 2025 to supply
chemicals and transport companies, HH2E said, adding this could
be scaled up to more than 1 GW by the end of the decade.
"Domestic green hydrogen production is crucial to secure a
key role for Germany in the future global green energy sector, a
sector that is receiving major support from governments in all
the world's major economies," HH2E co-founder Andreas
Schierenbeck said.
German industry could find it easier to stay competitive if
it doesn't fully depend on energy imports, Schierenbeck, a
former CEO of Uniper UN01.DE and Thyssenkrupp's TKAG.DE
elevator division, said.
The plant will rely on solar parks in the region to convert
renewable energy into hydrogen, HH2E said.
News of the project, HH2E's second in Germany, comes as
Europe's largest economy is grappling with an energy crisis
triggered by the complete halt of Russian gas supplies, forcing
it to look for new supplies at home and abroad.
The government is trying to build a hydrogen industry to
lead what it hopes will become a large market globally. Critics
of the technology point to uncertainty over costs and whether
enough renewable energy will be available to produce sufficient
green hydrogen.
($1 = 0.9381 euros)
(Reporting by Christoph Steitz
Editing by Mark Potter)
((christoph.steitz@thomsonreuters.com; +49 30 220 133 647;))