Germany, Norway to build major hydrogen pipeline

Germany just took a step closer to finding a long-term, greener replacement for Russian natural gas and coal.

German power producer RWE (RWEOY) and Norwegian state-owned energy firm Equinor on January 5 announced plans to build hydrogen-fueled power plants in Germany over the next few years, as well as a major pipeline between the two countries to feed them, CNN reports.

The agreement — which is not yet legally binding — is part of Germany’s efforts to phase out all coal-fired power stations by 2030 and decarbonize its energy sector. Berlin has pivoted dramatically away from Russia as a source of energy since its invasion of Ukraine and needs to find secure alternative suppliers.

“Through this collaboration, we will strengthen the long-term energy security for Europe’s leading industrial country,” Anders Opedal, Equinor’s CEO and president, said in a joint statement.

The power plants, jointly owned by RWE and Equinor, will initially run on natural gas produced in Norway before transitioning to “blue” hydrogen, also produced in Norway using natural gas and pumped through the underwater pipeline, the companies said.

More than 95% of the carbon dioxide emitted during the production of hydrogen will be captured and stored under the seabed, they added. Equinor plans to develop a 2-gigawatt production capacity for “blue” hydrogen by 2030.

The ultimate aim is to generate so-called “green” hydrogen using renewable energy produced by offshore wind farms, they said, without providing target dates.

The European Union has a target to build a 40-gigawatt renewable hydrogen production capacity by 2030.

“There is an urgent need for a rapid ramp-up of the hydrogen economy,” Markus Krebber, RWE’s chief executive, said in the statement. “Blue hydrogen in large quantities can make a start, with subsequent conversion into green hydrogen supply.”

The companies did not state how many power plants they intend to build, or the value of their joint investments.