RWE plans green hydrogen production plant at Grangemouth

German energy firm RWE has announced plans to build a green hydrogen production plant at Grangemouth.

The firm is working with Ineos, owner of the refinery, to develop the scheme which could be up and running by 2029, RWE said.

RWE has secured a grid connection and is shortlisting electrolyser suppliers. The firm will apply for planning permission as the next stage.

The facility will be powered by renewable energy – hence “green” hydrogen. It will produce hydrogen alongside an Ineos plan to produce “blue” hydrogen using gas.

Ineos still to close refinery

The plans will go ahead despite the facility facing closure next year.

© Supplied by RWE

In November, owner Petroineos announced Scotland’s last remaining oil refinery would cease operations as soon as 2025 following an 18 month process to transition to a fuel import terminal.

Petroineos – a joint venture between PetroChina and Ineos – blamed market pressures and the energy transition for the decision.

RWE said its project will be the first supply hydrogen to Ineos, “assisting them in significantly reducing their greenhouse gas emissions”.

The plant could produce up to 3.6 tonnes of hydrogen per hour.

Decarbonising Scotland’s biggest polluter

RWE Generation chief operating officer hydrogen Sopna Sury said: “This is a significant step towards RWE’s ambitions for the production of green hydrogen in Scotland.

“As one of the world’s leading energy companies, RWE has significant experience in onshore and offshore wind, developing green hydrogen production plants and operating large scale gas plants.

“This project at Grangemouth aligns with the Scottish Government’s vision for a ‘just transition’, putting Scotland at the forefront of the green revolution while protecting jobs and decarbonising Grangemouth.”

© Supplied by RWE

Ineos Grangemouth sustainability director Colin Pritchard, said the firm was supporting RWE in its investment.

The project would work alongside its plans for its gas-fired hydrogen plant, which will store carbon emissions as part of the planned Acorn CCS scheme at Peterhead.

He said: “This perfectly augments our project to develop a low-carbon (blue) hydrogen production unit at Grangemouth, with the CO2 exported deep underground in the North Sea via the Acorn transport and storage system.

“Together these projects support delivery of our net zero roadmap and place Grangemouth at the heart of Scotland’s future hydrogen economy.”

RWE has approximately 480MW of installed renewable capacity across 26 sites in Scotland. It has further plans for expansions underway, including 100MW of onshore wind in construction.

RWE is actively developing green hydrogen projects across Europe and targets 2GW of its own green hydrogen electrolyser capacity in its core markets by 2030.