Shell Energy Europe Limited has announced two significant power purchase agreements in Germany to supply renewable electricity for its REFHYNE 2 hydrogen electrolyzer project, marking a major step forward in the company's renewable hydrogen production strategy.

Power Purchase Agreement Details

The Shell subsidiary signed separate power purchase agreements with two renewable energy providers on November 18, 2025. Under a five-year contract with Nordsee One GmbH, Shell will purchase approximately one-third of the output from a 332-megawatt offshore wind farm. Nordsee One is a joint venture owned and operated by Northland Power and RWE, with Northland Power Inc. holding an 85% ownership interest and RWE holding the remaining 15%.

The second agreement spans 10 years with Solarkraftwerk Halenbeck-Rohlsdorf I/II Gmbh, through which Shell will offtake around 75% of the power generated by a 230-megawatt solar project currently under construction. The Halenbeck-Rohlsdorf Solar Power Plant consists of two nearly identical projects, each with a maximum rated output of 115 megawatts, featuring subsidy-free solar power generation, integrated storage options, and targeted biodiversity optimization.

REFHYNE 2 Electrolyzer Project

The renewable electricity secured through these agreements will power the REFHYNE 2 hydrogen electrolyzer, a 100-megawatt facility under construction at the Shell Energy and Chemicals Park Rheinland in Germany. Shell made the Final Investment Decision to progress REFHYNE 2 in 2024, building on lessons learned from its predecessor project. The electrolyzer is scheduled to begin operating in 2027 and is expected to produce up to 16,000 tonnes of low-carbon hydrogen annually, partially decarbonizing site operations.

The facility will use proton-exchange membrane (PEM) technology and be powered by renewable electricity to help reduce Scope 1 and 2 emissions. Shell expects that, once operational, hydrogen produced from REFHYNE 2 will meet the requirements for renewable fuels of non-biological origin (RFNBO) under current EU legislation. The project has received funding from the EU's Horizon 2020 research and innovation program and has been enabled by supportive policies, including the European Union's binding targets for renewable hydrogen and the German Federal Government's regulatory framework.

Strategic Impact and Market Applications

The 100-megawatt electrolyzer will produce renewable hydrogen to help decarbonize energy products manufactured at the Shell Energy and Chemicals Park Rheinland, including transport fuels and chemicals used across Europe. The facility provides products to businesses and end-consumers throughout Europe, with applications in high-quality fuels, lubricants for electric vehicle fluids and cooling fluids, paints, cosmetics, and electronic components.

Andy Beard, President of Hydrogen at Shell, emphasized the significance of the agreements, stating they bring together the company's advanced trading capabilities and Low Carbon Solutions expertise to decarbonize Shell's operations and customer products with pioneering renewable hydrogen technology. He described this as an exciting milestone in advancing the REFHYNE 2 project, which showcases Shell's strategy of delivering more value with less emissions.

Partner Perspectives and Project Development

Till Frohloff, Managing Director of Nordsee One, highlighted that the corporate power purchase agreement for carbon-free electricity will deliver steady economic and environmental value for all partners while demonstrating the potential for offshore wind to support the decarbonization of German industry. The Nordsee One wind farm began commercial operations in December 2017.

Karl-Heinz Remmers, co-CEO of Solarkraftwerk Halenbeck, noted that the Halenbeck project demonstrates that subsidy-free solar power production in Germany and its large-scale industrial use is now a reality. He described using this electricity to help produce hydrogen for the decarbonization of fuels and chemical products as a huge step forward, demonstrating that solar power has become a mainstay of Germany's energy supply.

Deutsche Anlagen-Leasing (DAL), a subsidiary of Deutsche Leasing Group and part of Germany's Savings Banks Finance Group, holds a 50% stake in Solarkraftwerk Halenbeck-Rohlsdorf II GmbH and structured the project's debt financing. Key project partners for REFHYNE 2 include ITM Power (Trading) Ltd, ITM Power Germany GmbH, Linde GmbH, TECNALIA, ETM, SINTEF AS, and CONCAWE.

The REFHYNE 2 project builds upon Shell's existing REFHYNE 1 facility at the same location, which began operation in mid-2021 as one of the largest hydrogen proton exchange membrane electrolyzers in the world at the time. The 10-megawatt REFHYNE 1 produces 1,300 tonnes of hydrogen per year and helps balance the local power grid by enabling the refinery to make and store hydrogen when there is surplus power from renewable sources.

Once operational, REFHYNE 1 and 2, alongside Shell's Holland Hydrogen 1 project in the Netherlands, will together provide more than 300 megawatts of renewable hydrogen production capacity in Europe. The Holland Hydrogen 1 project will feature a 200-megawatt electrolyzer powered by renewable energy from the Hollandse Kust (noord) offshore wind farm and is expected to become operational in the second half of the decade, making it one of the largest renewable hydrogen plants in Europe.

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