Siemens Energy announced has bagged a contract to supply a 280 MW electrolyzer to German utility company EWE. The two companies have also agreed to a 10-year service contract for the electrolyzer.
The electrolyzer, which will come up in the German city of Emden, is part of EWE's large-scale "Clean Hydrogen Coastline" project, which consists of four sub-projects, Siemens Energy said in a press release.
Siemens said it would deliver an electrolyzer based on PEM technology, which uses electricity to split water into hydrogen and oxygen along the proton exchange membrane. The stacks -- which are the heart of the electrolyzers -- will be manufactured at the company's new gigawatt factory at Siemens Energy's Berlin site.
The Emden electrolyzer is expected become operational in 2027 and will provide up to 26,000 tonnes of green hydrogen a year for various industrial applications in the region, the company said, adding that using the green hydrogen in place of fossil fuels in the local steel industry would eliminate ~800,000 tonnes of CO2 per year.
Germany and the European Commission have both classified the Clean Hydrogen Coastline as a strategic funding measure, or an IPCEI project (Important Project of Common European Interest). Last week, Germany disbursed €4.6 billion of EU-approved subsidies to a series of green projects, including the EWE Clean Hydrogen Coastline, which received €500 million.
Anne-Laure de Chammard, Member of the Executive Board of Siemens Energy, said in the release: "This project is an important element in the ramp-up of the green hydrogen industry in Germany," and added: "The immediate conclusion of the contract with EWE demonstrates that the industry is ready to swiftly implement these projects."
Stefan Dohler, CEO of EWE commented: "EWE is active along the entire value chain with its hydrogen projects, from production to transportation and storage. Our choice of location in north-west Germany and our decision to work with Siemens Energy means that we are focusing on both regional and national value creation."