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Shell (SHEL) to Build Largest Hydrogen Plant in the Netherlands

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The subsidiaries of Shell plc (SHEL - Free Report) have taken the final investment decision to construct a major hydrogen plant in the Netherlands — Holland Hydrogen I — which, per the oil supermajor, will be the largest in Europe once it commences operations in 2025.

Per Shell, the 200-megawatt electrolyzer will be built on the Tweede Maasvlakte situated in the port of Rotterdam and will have an output of up to 60,000 kilograms of renewable hydrogen per day. Partly owned by SHEL, the offshore wind farm — Hollandse Kust Noord — will be the source of renewable power for the electrolyzer.

The produced hydrogen, which will have a wide range of applications and can be deployed in many industries, will be funneled to Shell Energy and Chemicals Park Rotterdam using the HyTransPort pipeline, where it will replace some of the grey hydrogen usage in the refinery. The company stated that it would moderately decarbonize the facility’s production of energy products like petrol and diesel and jet fuel.

The London-headquartered firm, which intends to become a net-zero greenhouse gas emissions company by 2050, has been advancing the low-carbon output as it makes a transition away from oil and gas.

The Executive Vice President, Emerging Energy Solutions at Shell, Anna Mascolo, mentioned that renewable hydrogen would play an important role in the energy system of the future and that this project is a crucial step in helping hydrogen fulfill that promise.

The company stated that its goal is to assist in building a global hydrogen economy by developing opportunities in the production, storage, transport and delivery of hydrogen to end customers. “Holland Hydrogen I’s approval marks an important milestone on that journey not only for the Netherlands, as a leader in the hydrogen economy, but also for Shell globally,” Shell added.

Shell is one of the primary oil supermajors, a group of U.S. and Europe-based big energy multinationals with operations spanning worldwide. The company is fully integrated as it participates in every aspect related to energy, from oil production to refining and marketing. SHEL operates as an energy and petrochemical company. Shell plc was formerly known as Royal Dutch Shell.

Shell currently sports a Zacks Rank #1 (Strong Buy). Investors interested in the energy space might also look at the following companies — Ranger Oil , BP (BP - Free Report) and Crescent Point Energy — each sporting a similar Zacks Rank. You can see the complete list of today’s Zacks #1 Rank stocks here.

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