Worley Bags Shell Hydrogen Deal
Worley (ASX: WOR) has announced that it has been awarded an early engineering services contract by Shell (NYSE: RDS.A) to support the development of a new 200 megawatt electrolysis-based hydrogen plant.
Once complete, the asset will be one of the largest commercial green hydrogen production facilities in the world, according to Worley, which said the project directly supports its purpose statement of delivering a more sustainable world. Described by Worley as a first of a kind on this scale, the project is being led from the company’s offices in The Hague. Under the contract, Worley will provide early engineering and asset integration related services.
Shell’s Holland Hydrogen I development will be located on the Tweede Maasvlakte in the Port of Rotterdam in the Netherlands. A final investment decision on the project is expected to be made later this year, Worley highlighted. Operations would be scheduled to start by 2023 and would produce around 50,000 to 60,000 kg of hydrogen per day, Worley outlined.
Worley noted that renewable energy at the site will preferably be provided by the Hollandse Kust (noord) offshore wind farm. The hydrogen produced from the project will initially be used at the Shell refinery in Pernis to partially decarbonize the production of fossil fuels and support the industrial use of hydrogen in the heavy transportation industry, Worley said.
“This project supports our commitment to lead the development of hydrogen projects, while allowing us to support Shell’s strategic interests toward developing new fuels further,” Peter van Alphen, Worley’s senior vice president for the Netherlands and Germany, said in a company statement. “It is an important [project] for the Netherlands, Shell, Worley and indeed the world,” he added in the statement.
Commenting on the project, Lijs Groenendaal, Shell’s business opportunity manager for renewables and energy solutions, said, “we are very pleased to be supported by Worley for the engineering on Shell’s Holland Hydrogen I plant”.
“We look forward to a collaborative working relationship with the Worley team,” the Shell representative added.
Shell notes on its website that it sees great potential for the use of hydrogen in a range of sectors, from production to industry. The company states on its site that its ultimate goal is to produce green hydrogen, through electrolysis, using renewable power such as wind and solar.
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