Shell Plc (SHEL.L) said on Wednesday that it will begin construction of a renewable hydrogen facility in the Netherlands, which would be Europe’s biggest when completed in 2025.
Shell stated the Holland Hydrogen I 200 megawatt electrolyzer in Rotterdam’s port will create up to 60,000 kg of renewable hydrogen per day.
The London-based corporation, which aspires to be carbon-neutral by 2050, has been increasing low-carbon production as it transitions away from oil and gas.
Shell said that it intends to create hydrogen at the project using power provided by the Hollandse Kust Noord offshore wind farm, which it owns in part.
“Renewable hydrogen will play a pivotal role in the energy system of the future and this project is an important step in helping hydrogen fulfil that potential,” said Anna Mascolo, executive vice president of Shell’s developing energy solutions.
Renewable and low-carbon hydrogen is critical for reducing emissions, but it will only account for 5% of the global final energy mix by 2050, falling short of what is required to fulfill climate targets, according to global energy consultant DNV last month.