Norway’s Equinor and Germany’s RWE have inked a memorandum of understanding to jointly develop large-scale energy value chains, Trend reports Jan.5 with reference to Equinor.
The companies will replace coal fired power plants with hydrogen-ready gas fired power plants in Germany, and build production of low carbon and renewable hydrogen in Norway that will be exported through pipeline to Germany.
In particular, the MoU envisages construction of new gas power plants (CCGTs), contributing to Germany’s phase-out roadmap for coal.
“Equinor and RWE will jointly own the CCGTs which initially will be fueled with natural gas and then gradually use hydrogen as fuel with the ambition of fully to be run on hydrogen when volumes and technology are available,” reads a message from Equinor.
The partners will build production facilities in Norway to produce low carbon hydrogen from natural gas with CCS. “More than 95 percent of the CO2 will be captured and stored safely and permanently under the seabed offshore Norway.”
They will be engaged in joint development of offshore wind farms that will enable production of renewable hydrogen as fuel for power and other industrial customers in the future.
Both RWE and Equinor aim to take leading positions in the energy transition. To achieve a fully decarbonized energy system, the parties depend on the collaboration with governments, local authorities, regulators, communities, industry partners, suppliers, and others. For the infrastructure and projects under the Memorandum of Understanding to become commercially viable, appropriate regulatory support mechanisms will be required.