Low-Carbon Hydrogen Focus: RWE and Equinor’s Innovative Value Chain

(IN BRIEF) RWE and Equinor have entered into a new supply contract for 10 to 15 terawatt hours (TWh) of natural gas annually, spanning until 2028. This collaboration strengthens their longstanding partnership and aims to enhance security of supply and reduce emissions. The gas will be delivered to Germany’s virtual trading hub, THE (Trading Hub Europe). As part of their joint initiative, RWE and Equinor plan to invest in new gas-fired power plants in Germany prepared to use hydrogen as a feedstock once it becomes available at an industrial scale. This effort aligns with Germany’s power plant strategy. Additionally, the value chain includes the production of low-carbon hydrogen in Norway, contributing to the development of a hydrogen economy. Gradually, green hydrogen will be produced using wind power along the pipeline route. This collaboration underscores their commitment to sustainable energy solutions and decarbonization.

(PRESS RELEASE) ESSEN, 30-Oct-2023 — /EuropaWire/ — Leading energy companies, RWE AG (ETR: RWE), a German multinational energy company, and Equinor, a Norwegian energy company, have reaffirmed their dedication to advancing sustainable energy solutions through a newly signed supply contract. Spanning five years from October this year until 2028, the agreement entails the delivery of between 10 and 15 terawatt hours (TWh) of natural gas annually. This strategic bilateral agreement further solidifies the enduring partnership between RWE and Equinor, with the gas contract structured at market rates. The natural gas will be seamlessly delivered to Germany’s dynamic virtual trading hub, THE (Trading Hub Europe).

Andree Stracke, CEO of RWE Supply & Trading: “We are delighted to have signed a long-term gas supply agreement with our partner Equinor. For us as a global energy trader, gas plays an important role in the energy transition. The newly concluded gas supply agreement adds a further important building block to our pan-European natural gas portfolio, which contributes to ensuring security of supply.”

“Germany and Norway have been energy partners ever since Norwegian gas exports first started more than 45 years ago. I am very pleased that we are continuing to develop this partnership and that we can announce another bilateral agreement between Equinor and RWE, which is one of many companies that see Norwegian gas as an enabler of energy security as well as of the energy transition,” says Equinor’s Senior Vice President Gas & Power Helge Haugane.

Earlier in the year, RWE and Equinor unveiled their joint initiative aimed at establishing large-scale value chains, designed to bolster supply security and reduce emissions. This initiative is a response to the German-Norwegian Partnership on Climate, Renewable Energy, and Green Industry.

The initial phase of this strategic collaboration involves investments in the development of cutting-edge gas-fired power plants in Germany. These plants are strategically designed to transition to hydrogen as a feedstock as soon as industrial-scale hydrogen production becomes feasible in the country. Moreover, these plants align with the power plant strategy articulated by the German government, which seeks to establish an enabling regulatory framework for the deployment of new gas-fired power plants.

Critical components of this value chain include the production of low-carbon hydrogen in Norway and its efficient transport to Germany. This initiative has the potential to accelerate the growth of a hydrogen-based economy. Furthermore, the project envisions the gradual production of green hydrogen using wind power sourced from wind farms situated along the pipeline route.

The collaborative efforts of RWE and Equinor underscore their shared commitment to sustainable energy solutions and the imperative of decarbonization in the energy sector.

For more information on the strategic energy partnership between RWE and Equinor click here.

Media contact:

Regina Wolter
Finance / Industrial customer business
T +49 (0) 201 5179-5024

SOURCE: RWE AG