RWE secures approvals for giant green hydrogen project in Germany, but progress depends on government grants

Approval for the initial 200MW phase of GET H2 Nukleus has arrived seven months following the extensive 2,250-page application submission by the German energy company, RWE, to the local authorities. This significant development grants RWE the green light to construct and operate the first two 100MW electrolysers as part of its envisioned green hydrogen facility situated at the site of its gas-fired power plant in Lingen.

This project, bearing the name "GET H2 Nukleus," holds a pivotal role within the broader GET H2 network, which aims to establish hydrogen production and pipeline infrastructure spanning across Germany. This ambitious endeavor is a collaborative effort involving more than 50 companies, including industry giants such as BP, Uniper, and Thyssenkrupp.

RWE initiated the application process for this facility in February of the current year, submitting a comprehensive 2,250-page dossier to the Oldenburg Trade Inspectorate. Reflecting on this achievement, RWE's Chief Operating Officer for Hydrogen, Sopna Sury, remarked, "The approval for our plant is the result of constructive and intensive work, not least on the part of the authorities involved, who never had to examine a hydrogen project of this size before. Seven months from submitting the complete application to approval is a reference value that gives rise to optimism for the ramp-up of the hydrogen economy in Germany."

However, it's worth noting that while GET H2 Nukleus was included in the German government's 2021 selection of projects to potentially receive "Important Project of Common European Interest" (IPCEI) status from the European Commission, a status that would unlock substantial state aid, no funding commitment has been made as of yet. A spokesperson for RWE confirmed that a state aid investigation by the EU under the IPCEI program is still ongoing.

In contrast, some of the other projects nominated in 2021, such as Sunfire, have already received grants from the German government after being granted IPCEI status, albeit after a lengthy waiting period.

RWE's overarching plan involves installing a total of 300MW of electrolysis capacity, all powered by offshore wind electricity, for GET H2 Nukleus by the year 2027. However, it's noteworthy that RWE's operating partner on the project, Linde Engineering, has thus far only placed orders for 200MW of proton exchange membrane (PEM) electrolysers from ITM. This suggests that RWE may have adjusted its initial startup target of 2026 due to the lack of funding certainty.

In January, when RWE placed the order for the electrolysers, the company emphasized that its planned commissioning dates in 2024 and 2025 would be at risk of being unattainable if there were further delays in grant approvals.

Currently, RWE is in the process of commissioning a pilot project involving 14MW of electrolysers, which includes 10MW of pressurized alkaline technology from Germany's Sunfire and 4MW of PEM electrolysers supplied by Linde, all set to be completed in Lingen by the end of this year. Both of these technologies are being considered for future projects, although it remains uncertain whether the final 100MW of GET H2 Nukleus will be a competition between PEM and pressurized alkaline technologies or if a different option will be chosen.