TotalEnergies and RWE have sealed a landmark deal that marks a major step forward for Germany’s green hydrogen market.
The deal secures a long-term supply agreement that benefits both companies and accelerates industrial decarbonisation.
Under the 15-year agreement, TotalEnergies will purchase 30,000 metric tons of green hydrogen annually from RWE’s 300-megawatt electrolysis plant in Lingen from 2030.
This is the largest contract of its kind in Germany, setting a precedent for hydrogen adoption in heavy industry.
For TotalEnergies, it provides a crucial supply of clean hydrogen to help slash emissions at its refinery in Leuna, while for RWE, it guarantees a long-term customer for its expanding hydrogen production.
Hydrogen is already used in refineries to process crude oil, but most of it is currently produced using fossil natural gas, releasing significant CO2 emissions.
Switching to green hydrogen—made using renewable electricity—will prevent 300,000 metric tons of CO2 per year, equivalent to the emissions of 140,000 cars.
The deal aligns with Germany’s tightening greenhouse gas reduction targets, which require fuel suppliers to cut emissions by 25% by 2030.
The hydrogen will be generated exclusively from renewable sources under strict EU rules, requiring real-time matching of hydrogen production with wind and solar generation.
To ensure a stable supply even during low renewable generation, RWE will store hydrogen at its Gronau-Epe facility, set to launch in 2027.
The deal is also a key driver for Germany’s hydrogen infrastructure. The hydrogen will be transported via the country’s future 9,000km hydrogen core network, which will link production hubs like Lingen with industrial consumers in regions such as Leuna.
Markus Krebber, CEO RWE said: “Six months after the investment decision for the construction of the 300-megawatt electrolysis plant in Lingen, we have acquired an important anchor customer in TotalEnergies. This shows that hydrogen works with the right incentives for customers.”
Patrick Pouyanné, Chairman and CEO of TotalEnergies added: “This long-term green contract for green hydrogen marks an important milestone to reducing our CO2 emissions at our Leuna refinery. It will be made possible thanks to the completion of the H2 backbone by German authorities and their efficient support to green H2 customers like our Leuna refinery.”
The partnership showcases how industry collaboration can turn hydrogen from a niche energy source into a mainstream solution for heavy industry.