Shell has planned and involved in several projects to grab a double-digit share in the global hydrogen market by 2030 and have access to 25 million tons/year of carbon capture and storage (CCS) capacity by 2035. A company official said that it would account for about a fifth of CCS projects being studied globally.
Shell plans to produce green hydrogen through electrolysis using renewable energy. This process results in zero carbon emissions. However, the company believes that blue hydrogen would play a key role in global decarbonisation efforts. Blue hydrogen is extracted from natural gas through a reforming process that emits carbon. However, up to 97% of potential emissions can be captured using CCS technology.
Shell is developing a green hydrogen hub in the Port of Rotterdam. This project includes a 200MW electrolyser that can produce 50-60 tons of hydrogen a day. The electrolysis unit is expected to start up in 2023 and will provide green hydrogen to Shell refinery in Pernis. Shell eyes a final investment decision on the project this year.
Shell, Equinor, RWE, as well as the ports of Gasunie and Groningen have set up the NortH2 partnership to build wind farms in the North Sea. The wind farms will be able to generate 3-4 GW of renewable electricity that will be used to produce green hydrogen. The first turbines are expected to be ready by 2027. The project also includes an option to expand the capacity further to 10GW by 2040.
Shell is collaborating with Harbour Energy and Storegga in developing the Acorn hydrogen and carbon capture and storage (CCS) project in Scotland. The project aims to repurpose the St. Fergus gas processing terminal to enable the production of blue hydrogen using Autothermal Reforming (ATR) technology. Shell will market the blue hydrogen in the transportation and industrial sectors. It also plans to inject it into the gas grid by 2025.
Shell is building a 10MW electrolyser at its Rhineland Refinery in Germany. This unit is set to enter service by 2022 and designed to produce 1,300 tons/year of hydrogen. Shell is also working with nine other companies under the H-Vision consortium to replace coal and natural gas with blue hydrogen at the Port of Rotterdam.
