EWE and VERBUND establish a joint venture for one of Europe’s largest hydrogen projects

EWE AG and VERBUND AG have announced plans to develop one of Europe’s leading integrated hydrogen hubs. With the CHC Electrolysis JadeWeser project, located in the Wesermarsch region of Germany, the two companies are aiming to make a significant contribution towards establishing an integrated European hydrogen economy.

An independent project company will handle implementation. At the heart of the project is a 500-megawatt electrolyser and a planned production capacity of around 50,000 tonnes of green hydrogen per year. The plant will be connected to the future hydrogen core network and could potentially start providing green hydrogen for industry, mobility and the energy sector from 2032. The combination of production, storage and grid connection makes this a project of great strategic relevance for the hydrogen market ramp-up in Germany and Europe.

The joint venture by EWE Hydrogen GmbH and VERBUND Green Hydrogen GmbH is being established at a time when the hydrogen market is becoming increasingly consolidated. Following the first few years of market ramp-up, it has become clear that the projects that are most likely to be successfully implemented are those that have robust infrastructure, secured sites, strong financing partners and tangible commercial prospects at their disposal, in addition to technological expertise.

This is precisely why EWE and VERBUND are pooling their complementary expertise along the entire hydrogen value chain for their joint project. Together, the partners already have hydrogen projects with a capacity of around 400 megawatts either under development or already in operation.

“With this joint venture, we’re laying the foundation for implementing one of the most strategically important hydrogen projects in northern Germany. However, regulatory adjustments – such as the EU’s RFNBO requirements – remain necessary for a successful market ramp-up. Strong partnerships are also essential. Over the past few years, VERBUND and EWE have gained extensive experience in large-scale hydrogen projects, and we’re now pooling this expertise. It will contribute significantly to the successful implementation of the project,” said Stefan Dohler, Chairman of the Executive Board of EWE AG.

European partnership for security of supply and decarbonisation

The CHC Electrolysis JadeWeser project is a key element of the two companies’ joint hydrogen strategy and has a consistent European focus. Through its connection to the German hydrogen core network and prospective integration into future European hydrogen corridors, the project makes an important contribution to security of supply, the integration of European energy markets and achieving European climate targets.

At the same time, producing green hydrogen using domestic renewable energy sources strengthens Europe’s self-sufficiency and reduces its dependence on fossil fuel imports in the long term. The project therefore supports the development of a resilient, sovereign and competitive European energy system.

“The transition to clean energy requires strong European partnerships. With this joint venture, we are combining the strengths of two established energy companies and laying the groundwork for a secure and competitive supply of green hydrogen. For us, JadeWeser is a key component of a future European hydrogen economy,” said Michael Strugl, CEO of VERBUND AG.

Site advantages create ideal conditions for market ramp-up

The cooperation partners regard the quality of the project’s site and infrastructure as its particular strength. Suitable development sites in the southern urban area of Nordenham in the Wesermarsch region have been secured for the long term. In the immediate vicinity are a high-capacity 380 kV grid connection, with potential for expansion into the gigawatt range, as well as the future hydrogen core network. In addition to this, there is a guaranteed water supply, existing industrial infrastructure and proximity to important industrial, mobility and import corridors, such as the future A20 motorway.

Another key advantage is access to hydrogen cavern storage facilities or, alternatively, proximity to appropriate storage infrastructure, which enables hydrogen to be stored on a flexible basis and provided as and when required in the future. This strengthens security of supply and creates the conditions for a market-oriented and competitive hydrogen supply.

“The JadeWeser project is shaping up to be one of the best-positioned hydrogen projects in Europe in terms of infrastructure. The site symbolises the energy transformation in Europe: an industrial hub for the production of green hydrogen is being built next to a former nuclear power station. This creates excellent conditions for an economical and secure hydrogen supply,” said Jost Ahrens, Managing Director of VERBUND Green Hydrogen GmbH.

Integrated approach increases the likelihood of success

“With CHC Electrolysis JadeWeser, we can play our part in building a high-performance hydrogen economy and actively drive the development of a large-scale hydrogen project forward together. It is also clear that market ramp-up does not depend solely on technological progress,” said Tobias Moldenhauer, Managing Director of EWE HYDROGEN GmbH. He emphasised that, for projects with long development and investment cycles, reliable regulatory, economic and infrastructural framework conditions were crucial. These included, in particular, electricity procurement costs and the current additional burden resulting from RFNBO requirements, grid fees and indirect emission costs. At the same time, he said, incentives were needed to ensure the competitive use of hydrogen in industry, for example through appropriate instruments to offset the cost differential.

“Building a hydrogen economy is capital-intensive, long term in nature and involves various risks, particularly during the market ramp-up phase. This makes reliable strategic partnerships all the more important. In VERBUND, we have a partner who shares our conviction: green hydrogen will be a key component for industry decarbonisation. Together, we aim to unlock this potential through a strong joint venture,” said Moldenhauer.