ITM Power plc (LON:ITM) said a consortium of which it is part – along with Shell - has secured funding to build a huge electrolysis plant.
The plant will be built at the Rhineland refinery in Germany, and would be the largest unit of its kind in Germany and the world’s largest polymer electrolyte membrane (PEM) electrolyser.
It will have a peak capacity of 10 megawatts, according to Shell, and is scheduled to come on stream in 2020.
The hydrogen will be used for the processing and upgrading of products at the refinery’s Wesseling site and also for the purpose of testing the technology and exploring its possible application in other sectors.
The consortium, which also includes SINTEF, thinkstep and Element Energy, has now secured €10mln in funding from the European “Fuel Cell Hydrogen Joint Undertaking”.
Detailed technical planning and the approval process will now start.
"This new unit at Rhineland enables hydrogen to be made from electricity rather than natural gas. A unit of this kind brings a flexibility that can help the stability of the power grid, thereby facilitating more use of renewable electricity", explained Lori Ryerkerk, the executive vice president of Shell Manufacturing.
"In addition, if powered by renewable electricity, the green hydrogen will help reduce the carbon intensity of the site - a key goal for us," Ryerkerk added.
According to Shell, the Rhineland refinery currently requires around 180,000 tons of hydrogen annually, which is produced by steam reforming from natural gas; the new facility will be able to produce an additional 1,300 tonnes of hydrogen a year, which can be fully integrated into the refinery processes.
“If successful there is potential for this technology to be expanded at our refinery," said the refinery’s general manager, Thomas Zengerly.
Graham Cooley, the chief executive officer of ITM Power, said the new plant would represent the maturation of PEM technology for large-scale, industrial applications.
Shares in ITM were up 5.4% at 36.9p in lunchtime trading.