TotalEnergies Buys Stake in RWE Wind and Green Hydrogen Project

TotalEnergies Buys Stake in RWE Wind and Green Hydrogen Project

TotalEnergies SE agreed to buy a 50% stake in RWE AG’s project to build an offshore wind farm in Dutch waters, with a view to produce green hydrogen for the oil major’s European refineries.

Author of the article:

Bloomberg News

Francois de Beaupuy

Published Jul 24, 2024  •  1 minute read

TotalEnergies headquarters in La Defense business district of Paris. Photo by Nathan Laine /Bloomberg

(Bloomberg) — TotalEnergies SE agreed to buy a 50% stake in RWE AG’s project to build an offshore wind farm in Dutch waters, with a view to produce green hydrogen for the oil major’s European refineries.

The French energy giant’s decision is the latest step to replace the 500,000 tons of “gray” hydrogen used in the plants by 2030. The move will contribute to its goal of cutting greenhouse gas emissions from its oil and gas operations by 40% between 2015 and 2030.

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Under the agreement, TotalEnergies will buy half the 795-megawatt OranjeWind project that will be built in the North Sea for an undisclosed amount, according to a statement Wednesday. The company will use its share of the output to power 350 megawatts of electrolizers that will produce 40,000 tons per year of green hydrogen, made from renewable energy. 

Green hydrogen has been touted by European policymakers as key to reducing the use of fossil fuels in industries such as refining and steelmaking, while curbing the region’s dependence on energy imports. However, few large projects have reached final approval as the production process — which requires electrolyzers powered by renewables — remains more expensive than making hydrogen from natural gas.

The OranjeWind farm will produce enough green electricity to supply the equivalent of more than one million Dutch households, RWE said Wednesday. 

In addition to producing green power and hydrogen, OranjeWind will also support the stability of the Dutch grid, TotalEnergies said. Construction of the wind farm is scheduled to start in 2026, with full commissioning expected in early 2028.

Last month, TotalEnergies signed a 15-year contract to buy 70,000 tons a year of green hydrogen from Air Products & Chemicals Inc. for its northern European refineries from 2030. The French energy firm is also developing projects to produce green and low-carbon hydrogen with Engie SA and Air Liquide SA for its refineries and biofuel plants in France.

—With assistance from Petra Sorge.

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