RWE partners with H2U to bring Australian hydrogen to Germany

German energy group RWE AG (ETR:RWE) said today RWE Supply & Trading has signed a memorandum of understanding with Australian hydrogen project developer The Hydrogen Utility Pty Ltd (H2U), seeking to bring green hydrogen made in Australia to Europe.

The companies want to develop hydrogen trading between their respective countries with the aim of supplying Germany and Europe with green hydrogen and hydrogen derivatives such as ammonia and synthetic methane.

RWE said the planned liquefied natural gas (LNG) terminal in Brunsbuettel, where the group plans to book capacity, is suitable for hydrogen imports into Germany.

H2U, which last year secured an investment from Japan's Mitsubishi Heavy Industries Ltd (TYO:7011), is working on several hydrogen projects in Australia and New Zealand. This includes the Eyre Peninsula Gateway project in South Australia, where a 75-MW electrolysis plant will be constructed, with an intended expansion to 1.5 GW throughout the 2020s.

"H2 is the perfect long-term solution to decarbonise industry, aviation and the transport of heavy goods," Javier Moret of RWE Supply & Trading stated, noting that Australia has excellent conditions for green hydrogen production, while RWE Supply & Trading has experience with shipping energy carriers, including Australian LNG.

The companies' efforts are in line with the HySupply German-Australian feasibility study, initiated in December 2020.

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