RWE aims to build 2GW of electroyser capacity by 2030 as part of a new strategy to invest €50bn ($57bn) in clean technologies.

The firm announced plans to spend an average of €5bn/yr on offshore and onshore wind, solar, batteries and hydrogen over the period, expanding its renewables portfolio from 25GW to 50GW across Europe, North America and Asia-Pacific. Of this annual spend, €500mn is earmarked for flexible generation and the expansion of hydrogen.

RWE is well-positioned to benefit from the expanding hydrogen economy, according to CEO Markus Krebber.

“When it comes to the future topic of hydrogen, we have all the possibilities under one roof: from green electricity production, to expertise in green hydrogen production and storage, to energy trading that can tailor the fuel to the needs of industrial customers,” he says.

RWE is already involved in over 30 hydrogen projects with partners but until now had not announced the intention to build its own electrolysers.

Project management

Utilities tend to form collaborations with other firms and often restrict their participation in green hydrogen projects to power generation, rather than being project managers themselves.

50GW – RWE’s targeted renewable capacity by 2030

But RWE will soon start the order process for its first 100MW of electrolyser capacity. “By the end of the decade we will build up 2GW of our own electrolysis capacity based on our project pipeline, which contains potential projects with a total capacity of up to 10GW,” says Krebber.

The firm will also look to convert its 14GW of gas-fired power stations to hydrogen. And it will develop its trading arm to facilitate imports of hydrogen and ammonia.

“For this purpose, we have already entered into partnerships in Australia, Malaysia, Slovenia, Ukraine and other countries,” says Krebber.

The investments will be primarily financed by cashflows from operating activities, sales of stakes in projects, divestments and selling green bonds, according to RWE CFO Michael Mueller.

“Thanks to our low debt, we have plenty of financial headroom, which we will make use of. Due to our outstanding creditworthiness we have excellent access to the financial market,” he says.

RWE is targeting net-zero emissions by 2040.

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Author: Tom Young