May 17 (Renewables Now) - German power group Steag GmbH has signed an agreement to supply industrial gases manufacturer Nippon Gases Deutschland GmbH with oxygen that will be produced as a by-product at a planned 53-MW green hydrogen site in Saarland.
Steag together with partners is planning to set up an electrolysis plant at its Voelklingen-Fenne site to produce green hydrogen for the decarbonisation of the steel industry in the region.
The oxygen that will be released in the process of water electrolysis at the planned plant will be delivered to Nippon Gases via an existing oxygen pipeline owned by the industrial gases manufacturer. The pipeline is already connected to Steag's power plant at the site, making further investments in transport infrastructure unnecessary.
The gas will be then supplied to Nippon Gases' customers.
“The agreement that has now been reached with Nippon Gases is a successful step in ensuring the profitability of the overall project,” said Karl Resch, who heads Sales and Origination in Steag’s Trading Division.
The 53-MW electrolyser in Saarland will be built as part of the HydroHub Fenne project in which Steag is partnering with Siemens AG (ETR:SIE), the Institute for Future Energy and Material Flow Systems (IZES gGmbH) and the German Research Centre for Artificial Intelligence (DFKI GmbH). The hydrogen plant will be part of a cross-border hydrogen economy in Luxembourg, the French region of Lorraine and Saarland.