MHI, Shell, Vattenfall and Wärme Hamburg sign LOI for 100 MW hydrogen project at Moorburg in Hamburg

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Mitsubishi Heavy Industries, Shell, Vattenfall, and Wärme Hamburg sign Letter of Intent for 100 MW hydrogen project at Moorburg in Hamburg, Germany. 

In addition to the construction of a scalable electrolyzer with an initial output of 100 megawatts, the further development of the site into a so-called “Green Energy Hub” is planned. This includes the exploration of the extent to which the existing infrastructure of the Moorburg location can be used for the production of energy from renewable sources.

In this context, concepts for the necessary logistics chains and storage options for hydrogen will also be considered. Subject to future investment decisions and according to the current state of planning, once the site has been cleared the production of green hydrogen is anticipated in the course of 2025. This would make the electrolyzer one of the largest plants in Europe.

The partners intend to apply for funding under the EU program “Important Projects of Common European Interest” (IPCEI). This should take place in the first quarter of 2021 with the submission of a first outline of the project. The four partner companies view the energy location as having ideal conditions for further use. It is connected to both the national 380,000-volt transmission network and the 110,000-volt network of the City of Hamburg. In addition, overseas ships can call at the location directly and use the quay and port facilities as an import terminal.

The municipal gas network company also intends to expand a hydrogen network in the port within ten years and is already working on the necessary distribution infrastructure. Numerous potential customers for green hydrogen are located near the site, thus enabling the project to cover the entire hydrogen value chain - from generation to storage, transport, and utilization in various sectors. With these prerequisites, the Moorburg location is optimal for the German federal state of the Free and Hanseatic City of Hamburg and Northern Germany and can become a potential starting point for the development of a hydrogen economy. 

For many years, Moorburg was the site of a gas-fired power plant operated by Hamburgische Electricitäts-Werke, and Vattenfall had been operating a coal-fired power plant here since 2015. Its commercial operation was terminated after the power plant won a bid in the auction for the nationwide coal phase-out in December 2020. A decision by the transmission system operator on the system relevance of the plant is expected in March 2021. The City of Hamburg and Vattenfall are striving to clear partial areas of the site as soon as possible for the project to produce green hydrogen and the development of a Green Energy Hub.

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