Shell signs off deal to test renewable liquid hydrogen supply chain

Shell enters partnership to test renewable liquid hydrogen supply chain

Shell New Energies NL BV, ENGIE, Vopak and Anthony Vederhave have signed an agreement to study the feasibility of producing, liquifying and transporting green hydrogen from Portugal to the Netherlands.

The study will oversee hydrogen production from renewable power in the industrial zone of the Sines port, following shipment of the liquified hydrogen via a liquid hydrogen carrier to the Port of Rotterdam for distribution and sale.

The project aims to deliver a first shipment of liquid hydrogen from Sines to Rotterdam by 2027.

“We consider liquid hydrogen as a key solution to import renewable energy into markets such as the Netherlands or Germany,” said Dr. Andreas Gorbach, Head of Truck Technology and Member of the Board of Management Daimler Truck AG.

“We are developing the next generation of trucks which can use liquid hydrogen directly.”

The consortium aims to reduce the cost of liquid hydrogen production and drive the infrastructure development along the full supply chain.

Under the partnership, Shell said that together with ENGIE they will collaborate across the value chain, while the involvement of Anthony Veder and Vopak will focus on shipping, storage, and distribution.

The initial assessment will test the potential of producing, transporting, and storing around 100 tonnes per day, with potential to scale this up over time, said the parties.

The governments of Portugal and the Netherlands previously signed Memorandum of Understanding in 2020 strengthening their commitment for the production and transport of hydrogen.

Earlier this month, Shell took the final investment decision to build Europe’s largest green hydrogen plant on Maasvlakte 2 at the Port of Rotterdam.

The plant will be named Holland Hydrogen I and is expected to become operational in 2025.

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