Marketing success for STEAG hydrogen project in Saarland
Völklingen/Essen. STEAG GmbH intends to supply Nippon Gases Deutschland GmbH with oxygen from its site at Völklingen-Fenne in Saarland in the future. The oxygen will soon be produced there as a by-product from the “HydroHub Fenne” electrolyzer planned by STEAG and its partner Siemens Energy for the production of green, i.e. climate-neutral, hydrogen. The gas will be supplied via an oxygen pipeline owned by Nippon Gases, to which STEAG’s long-established power plant site is already connected, and therefore no further investment in transport infrastructure is required.
Oxygen is a by-product of water electrolysis. An electrolysis plant with a capacity of around 53 megawatts (MW) is to be built at the Völklingen-Fenne site as part of the “HydroHub Fenne” project. “The hydrogen (H2) produced in the process will make a significant contribution to the decarbonization of the steel industry in Saarland,” says STEAG’s project manager Philipp Brammen.
The agreement now concluded with Nippon Gases is a sensible addition to the economic viability of this pioneering project for the future. The industrial gas manufacturer plans to purchase the additional oxygen (O2) produced for delivery to customers. The advantage for all parties involved is in the use of a pipeline network which is already in place in the Saar region to transport oxygen for reliable supply to the locally based steel industry. The “HydroHub Fenne” project provides economic proof of the new electrolyzer’s added value resulting from the simultaneous use of hydrogen and oxygen. This agreement is another decisive step on the part of Nippon Gases to create added value for society and provide practical support for the use of new technologies.
Milestone for the HydroHub Fenne project
This marketing success is a further step on the way to implementing the hydrogen project, which is important for the industrial location of Saarland as a whole. “The agreement that has now been reached with Nippon Gases is a successful step in ensuring the profitability of the overall project,” says Karl Resch, who is in particular responsible for the area of “Sales & Origination” in STEAG’s Trading Division and was in charge of negotiating the Letter of Intent with Nippon Gases and Siemens Energy on behalf of STEAG.
This is also the view of STEAG project partner Siemens Energy: “The marketing of the by-product oxygen, which is expected in the near future, shows that the HydroHub Fenne is a sustainable and forward-looking project in the best sense of the word. Not only can it provide hydrogen as a key element of a future climate-neutral energy system, but it also supplies the oxygen that is frequently needed in industrial processes,” says Eric Klein, Vice President Sales Europe New Energy Business at Siemens Energy, summarizing the advantages of the project for the climate and the environment.
HydroHub Fenne as the nucleus of a cross-border hydrogen economy
Together with its international partners Creos Deutschland, Encevo, GazelEnergie, GRTgaz, H2V, Hydrogène de France and Stahl-Holding-Saar, STEAG has also joined forces in the European Economic Interest Grouping (EEIG) “Grande Region Hydrogen”. In this respect, the future HydroHub Fenne is also an integral component of a cross-border hydrogen economy in Luxembourg, the French region of Lorraine (Grande-Est) and Saarland.