In a memorandum of understanding signed this week, Shell and Hydro Havrand aim to jointly produce and supply hydrogen produced from renewable electricity in hubs centered around Hydro and Shell’s own business, and where they see strong potential for scaling production for customers in heavy industry and transport.

The companies have started initial work under the agreement. They will first identify opportunities to produce and supply renewable hydrogen to Hydro, Shell and the broader market from locations in Europe. The intention is to expand into additional regions and locations over time.

Replacing natural gas for heating purposes in aluminium production with renewable hydrogen will contribute toward Hydro’s global commitment to reduce its greenhouse gas emissions by 30% by 2030.

“Hydro looks to green hydrogen as a way to reduce our aluminum’s carbon footprint even further, as well as a business opportunity on its own merits in the ongoing decarbonization of the economy. Hydro Havrand can leverage a broad set of competencies within Hydro, and through its total offering help other industrial players succeed with their energy transitions, says Arvid Moss, Hydro Executive Vice-President for Energy.

“Hydrogen will play a key role in decarbonizing hard-to-electrify sectors, which is vital for accelerating progress towards a net zero emissions future. By leveraging each other’s strengths and capabilities, Hydro Havrand and Shell can work toward a shared goal of establishing integrated hydrogen value chains and ultimately a strong global market for hydrogen,” says Elisabeth Brinton, Shell’s Executive Vice-President for Renewables & Energy Solutions.

About Shell
Shell’s Renewables & Energy Solutions business was created in 2016 and leads the development and growth of Shell’s integrated power business, including low-carbon sources like wind and solar, new mobility options like electric vehicle charging, and lower-carbon fuel options, like hydrogen, for industry and road transport.

About Hydro Havrand
Hydro Havrand offers green hydrogen made from renewable energy to help bring the world to net-zero emissions. We will develop, operate and own green hydrogen facilities, and provide our industry and energy expertise to customers to provide the solutions they need to make the fuel switch and transition to renewable energy. Hydro Havrand is an industrial venture with global ambitions, building on our owner company Hydro’s 115 years of experience in renewable energy and industrial development.