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German LNG Terminal and RWE to explore Hydrogen opportunities via Brunsbüttel
To develop green hydrogen possibilities via the planned LNG terminal in Brunsbüttel: RWE and German LNG Terminal, the joint venture developing Germany’s first LNG terminal, have agreed to jointly explore the opportunities of this climate friendly fuel. Both companies have therefore signed an agreement, manifested in form of a Memorandum of Understanding to promote the use of hydrogen produced from renewable sources. In September 2018, both companies had already signed a long-term agreement for a considerable part of the planned terminal’s LNG import capacity.
Rolf Brouwer, Managing Director of German LNG Terminal GmbH, emphasizes: “RWE’s interest in jointly exploring the import of hydrogen in Brunsbüttel proves the strategic importance of the site and the project. Hydrogen produced from renewable energy sources is in line with Germany’s goal to become climate-neutral by 2050.”
Domestic production will not be able to meet the anticipated future demand, posing the need for import of the climate friendly fuel. LNG import terminals like Brunsbüttel can be combined with entry points for (liquid) hydrogen produced in other regions of the world where wind and solar energy are available at larger scale and lower cost than in Germany. Existing gas pipelines connected to the LNG terminal are perfectly fit to distribute hydrogen locally.
Javier Moret, Global Head of LNG at RWE Supply & Trading GmbH, explains: “We are advocates of LNG. It can provide Germany with clean and affordable energy today and at the same time contribute to reducing emissions in the maritime and road transport sector as an alternative fuel. At the same time, we want to make sure we are prepared for the next technological advancement. In the future hydrogen will play a key role as a climate-neutral fuel in the energy mix. We are prepared for this next step with the new agreement. Therefore, we are happy to support German LNG Terminal’s initiative in this field.”
Currently the parties are in the final phase of negotiating fully binding legal contracts for LNG imports. RWE and German LNG expect this process to be finalised by the end of 2020. putting German LNG in a position to reach a positive investment decision.
RWE Supply & Trading GmbH is the interface between RWE and energy markets around the world. Around 1,600 employees from 40 nations trade electricity, gas, commodities, and CO₂ emission certificates. Aided by precise market analyses and guided by high customer orientation, they create innovative Energy supply solutions as well as concepts for risk management in industrial companies. The trading company also ensures the commercial optimisation of the RWE power plants, operates storage for natural gas, and markets the renewable energy generated by RWE Renewables.
The German LNG Terminal GmbH is a joint venture of the Dutch companies Gasunie LNG Holding B.V. and Vopak LNG Holding B.V. as well as Oiltanking GmbH, a subsidiary of Marquard & Bahls AG, based in Hamburg. The aim of German LNG Terminal GmbH is to develop, build, own and operate a multifunctional LNG import terminal in northern Germany. The terminal will contribute to energy diversification in Germany and will support the introduction of LNG as a cleaner fuel alternative in maritime and road transport, lowering the environmental impact of both shipping and heavy goods vehicles transport. The terminal will combine a variety of services such as unloading and loading of LNG ships, temporary storage of LNG, regasification and send out into the German natural gas network and LNG distribution by trucks. For more information, please visit: www.GermanLNG.com