Shell, Norsk Hydro review green hydrogen opportunities
The renewable energy division of Anglo-Dutch major Shell joined forces on November 9 with Norwegian aluminium and renewable energy company Norsk Hydro to examine potential developments in green hydrogen.
Green hydrogen production relies on an electrolyser powered by renewable energy to split water into oxygen and hydrogen.
Shell New Energies Holding Europe and Hydro Havrand, the green hydrogen division of Norsk Hydro, signed a memorandum of understanding (MoU) to use the renewable energy from regional hubs to produce hydrogen.
“The ambition is to use the hydrogen to help decarbonise Hydro’s and Shell’s own operations, and to supply customers in heavy industries, the maritime sector and road transport,” they said.
Industry and transport are among the more difficult economic sectors when it comes to tackling emissions. Norsk Hydro said that using hydrogen in the aluminium production process would contribute to its goals of cutting its own greenhouse emissions by 30% by 2030.
“Hydrogen will play a key role in decarbonising hard-to-electrify sectors, which is vital for accelerating progress toward a net-zero emissions future,” said Elisabeth Brinton, Shell’s executive vice president for renewables and energy solutions.
Shell on November 3 signed a similar MoU with industry contractor McDermott to look at ways to decarbonise construction.
The pair aim to reduce or eliminate emissions using low carbon fuels, renewable power and digital solutions, and by decarbonising marine construction vessels. Both companies are striving to bring their emissions to net zero by 2050.
The same day, the Anglo-Dutch major announced it was creating a dedicated $1.4bn fund to invest in "innovative companies" over the next six years that are working to accelerate the energy transition.
The announcement by CEO Ben van Beurden comes as Shell faces heightened scrutiny over its emissions, as well as a call by an activist investor to break the company up, splitting its oil and gas operations from its expanding energy transition business.