Shell and Norsk Hydro have agreed to collaborate on the production and delivery of hydrogen derived from renewable energy.
The goal is to use the hydrogen to assist decarbonize Hydro’s and Shell’s activities, as well as to serve clients in heavy industries, the marine industry, and road transportation.
It will be manufactured in hubs centered around Hydro and Shell’s own operations, where they see significant opportunity for increasing production for clients in heavy industry and transportation.
Under the terms of the agreement, the firms have begun preliminary work.
They will initially look for chances in Europe to create and distribute renewable hydrogen to Hydro, Shell, and the rest of the market.
The plan is to gradually grow into other areas and locales.
Replacing natural Gas for heating in aluminum production with renewable hydrogen will help Hydro meet its global promise to cut greenhouse gas emissions by 30% by 2030.
“Hydro looks at green hydrogen as a method to lower our aluminum’s carbon footprint even further, as well as a commercial potential on its own merits in the continuous decarbonization of the economy,” said Arvid Moss, executive vice president for energy at Norsk Hydro.
“Hydro Havrand can use a broad range of expertise inside Hydro and help other industrial players succeed with their energy transitions through its comprehensive offering.”
“Hydrogen will play a crucial role in decarbonizing hard-to-electrify sectors, which is critical for speeding progress toward a net-zero emissions future,” said Shell’s executive vice president for renewables and energy solutions, Elisabeth Brinton.
“By using each other’s strengths and skills, Hydro Havrand and Shell can collaborate toward a common objective of building integrated hydrogen value chains and, eventually, a robust global hydrogen market.”