Ineos Plans $2.3 Billion Investment in Green Hydrogen Production
Ineos, the UK-based plastics, oil and gas conglomerate, has announced plans to accelerate production of green hydrogen across Europe with an investment of $2.3 billion. The company - known best in the maritime world for the "Shale Gas for Progress" slogan on its ethane carriers - announced that it will build new electrolysis plants to make zero-carbon green hydrogen in Norway, Germany, and Belgium over the next ten years.
The investment would be Europe’s largest green hydrogen electrolysis commitment, and it has the potential to transform zero-carbon hydrogen production across the continent. Through its European subsidiary Inovyn, which operates electrolytic manufacturing plants to make chlorine, Ineos is the continent's largest existing operator of electrolysis - the technology necessary to produce green hydrogen. The company also has extensive experience in hydrogen storage and handling for industrial uses.
“Green hydrogen represents one of our best chances to create a more sustainable and low carbon world. Europe is crying out for more investment in green hydrogen and INEOS’ announcement shows our determination to play a leading role in this important new fuel,” said Jim Ratcliffe, Ineos' Chairman.
The petchem company is a major industrial consumer of hydrogen, and its own operating units will be among the first customers. Its first plant will be a 20 MW electrolyzer in Norway, and it will lead to a minimum reduction of 22,000 tons of CO2 per year by reducing the carbon footprint of Ineos’ operations at Rafnes. The firm says that it will also serve as a hub to provide hydrogen to the Norwegian transport sector.
Next, Ineos plans to build a larger-scale 100 MW electrolyzer to produce green hydrogen at its Cologne site in Germany. Hydrogen from the unit will be used to produce green ammonia, a leading future fuel candidate for the shipping industry.
According to Ineos, the Koln project will reduce carbon emissions by about 120,000 tons per year. It will also open opportunities to develop E-Fuels through power-to-methanol applications on an industrial scale.
“As hydrogen becomes available for zero carbon transportation as well as many applications in the home and in industry Ineos is uniquely placed to support new opportunities, driven by emerging demand for affordable zero-carbon energy sources,” said Wouter Bleukx, Inovyn Hydrogen Business Manager.
The company says that it is developing other projects in Belgium, France, and the UK, with more announcements expected soon.