German oil refinery to build 30 MW hydrogen electrolysis plant

* Project gets 30 mln euros from economy ministry
* Gets ball rolling for game-changing 30 MW size
* Big companies part of the project
* Follows Germany's agreement on national strategy

By Vera Eckert
FRANKFURT, Aug 3 (Reuters) - Companies involved in a
hydrogen project at the Heide oil refinery near Hamburg said on
Monday they would build a 30 megawatts (MW) electrolysis plant
as a first step towards developing commercial-scale carbon-free
energy.
Germany last month agreed a national hydrogen strategy to
help to decarbonise the economy, including providing 9 billion
euros ($10.58 billion) to help promote new projects that can
make the transition from pilot status to production of
marketable clean fuel. The country is aiming for 5,000 MW of electrolysis capacity
by 2030 to replace conventional and nuclear power and to develop
fuel for heating and transport to eventually replace gas and
oil.
The partners involved in the Heide refinery project, known
as WESTKUESTE 100, received approval for 30 million euros in
funding from the economy ministry. They are providing 59 million
euros making at total investment of 89 million, they said.
The spending plans are modest but the size of the plant - at
30 MW - is a considered a game changer in the development of
hydrogen as a fuel.
Germany has been experimenting with around 40 electrolysis
plants for a decade but the biggest so far measures 6 MW.
The plant will pass electricity from wind turbines through
water to extract carbon-free hydrogen that will be used by the
Heide refinery instead of fossil fuel-based hydrogen.
The plant will also produce alternative hydrogen fuels for
the raw material needs of the partners in the project ranging
from heat to kerosene and plastics. The 10 partners in the project include the German sections
of French utility EDF EDF.PA and cement maker Holcim
HLCM.PS , gas pipeline operator Open Grid Europe (OGE), Danish
wind company Orsted ORSTED.CO , the Heide refinery, the Heide
town's municipal utility, local utility network Thuega and
Thyssenkrupp Industrial Solutions. TKAG.DE
Eight of the partners are companies which are working with
the Heide region's public sector development agency and the
Westkueste University of Applied Sciences.
EDF, Orsted and the privately-owned Heide refinery will
construct the plant in a newly founded joint-venture
partnership.


($1 = 0.8508 euros)