FRANKFURT – Shell aims to produce aviation fuel and nhtha from plants and renewable energies, and to scale up an electrolysis facility that produces fossil-free hydrogen on a commercial scale to move away from crude oil.
The energy major announced an online conference on Friday that he had applied for subsidies dareWork from the European Union and from German funds, which are intended for dedareBonuses. Fabian Ziegler, Head of Shell Germany, said that several hundred million euros should be spent each year, but did not specify a desired ratio between corporate and public funds. The global Shell Group has set itself the goal of zero net emissions by 2050.
In Wesseling, part of the Rhineland refinery, Shell plans to use green electricity and biomass to produce synthetic power-to-liquids (ptl) in a darebon-free way to replace conventional jet fuel and nhtha in the long term. The 100,000 tons / Pa-Ptl plant could be built from 2023 and start production in 2025.
Shell also provided a schedule for the construction of a 100 megawatt (MW) electrolysis plant called Refhyne II, which was enlarged from an existing 10 MW plant. Hydrogen is considered an environmentally friendly fuel when electricity from renewable energy sources is used for its production. Shell has started securing offshore wind turbines whose electricity could be used as feedstock for electrolysis.
The recent acquisition of Next Kraftwerke, a VPP (Virtual Power Plant) operator, gives the company access to aggregated biomass-to-power and solar systems. A final investment decision for Refhyne II is due this year and production could begin in late 2025, Ziegler said.
Last summer, the Berlin government earmarked 7 billion euros for the development of green hydrogen in Germany and a further 2 billion euros for the development of partnerships with other countries in order to introduce the alternative fuel across industries and energy sources.
It will take many years to build the market, but there are clear goals for 2030, accompanied by plans to convert the existing gas and oil transportation infrastructure, for example around existing refinery clusters.
Hydrogen has a high mass energy content, but conversion losses from electrolysis and high costs in preparation for dispensing pose challenges.
The cost of producing green hydrogen from 5 to 6 euros per kg needs to be reduced, since hydrogen based on fossil fuels costs 1.50 euros per kg, he said.
The plans for Wesseling tie in with other European Shell initiatives with partners to set up electrolysis production in Hamburg and the Netherlands.
Shell wants to build supply chains for hydrogen in the transport sector and provide electrical charges.