Siemens Energy Secures Major Hydrogen Project Deal with German Utility EWE

Siemens Energy has received a contract from German utility EWE to deliver a 280-megawatt electrolysis system. Set to be operational by 2027 in Emden, Germany, the plant will generate up to 26,000 tons of green hydrogen annually for regional industrial use. This green hydrogen could potentially cut around 800,000 tons of CO2 emissions per year in industries such as steel, by replacing fossil fuels.

The electrolysis plant is a key component of EWE's expansive “Clean Hydrogen Coastline” hydrogen project, which includes four separate sub-projects. The electrolyzer will be the heart of the Emden hydrogen production facility, which, along with essential components like compressors and cooling systems, will have an average power consumption of 320 megawatts throughout its lifespan. In addition to providing the electrolyzer, Siemens Energy and EWE have also agreed on a ten-year service contract.

The German government and the European Commission have designated the project as an IPCEI (Important Project of Common European Interest), recognizing it as a strategic funding initiative. Last week, the Federal Ministry for Economic Affairs and Climate Protection officially awarded the funding decision to EWE. Following the contract signing, EWE and Siemens Energy have promptly greenlit the project's implementation.

Anne-Laure de Chammard, Member of the Executive Board of Siemens Energy, states, "This project is a crucial step in advancing the green hydrogen industry in Germany. With the long-anticipated funding approvals, the German government has provided the final piece needed to execute strategically significant projects on a large scale. The swift signing of the contract with EWE shows that the industry is prepared to quickly move forward with these initiatives."

"EWE is engaged across the entire hydrogen value chain, from production to transportation and storage. By selecting a site in north-west Germany and partnering with Siemens Energy, we are emphasizing both regional and national value creation," says EWE CEO Stefan Dohler. After a rigorous twelve-month evaluation of ten global electrolysis manufacturers, Dohler adds, "I am pleased to collaborate with Siemens Energy on this hydrogen project, as they have been a longstanding partner in all facets of our energy infrastructure."

Siemens Energy's electrolyzer utilizes PEM technology, which employs electricity to divide water into hydrogen and oxygen through a proton exchange membrane. This technology is especially well-suited for integration with renewable energy sources due to its highly flexible ramp-up times. The core components of the electrolyzers, known as stacks, are produced at Siemens Energy's new gigawatt factory in Berlin.