In yet another boost for the use of hydrogen in the German energy mix, RWE Supply & Trading has signed a Memorandum of Understanding with Australian hydrogen project developer The Hydrogen Utility Pty Ltd (H2U) seeking to bring green hydrogen made in Australia to Europe.

The companies want to develop hydrogen trading between their respective countries with the aim of supplying Germany and Europe with green hydrogen and hydrogen derivatives such as ammonia and synthetic methane.

RWE said a planned liquified natural gas (LNG) terminal in Brunsbuettel, on Germany's North Sea coast, could potentially handle future imports of H2U's green hydrogen.  Similarly, German rival Uniper said on Wednesday it was considering converting its coal-fired power plant at Wilhelmshaven, also on the North Sea, into a hydrogen hub.  LNG projects in Germany have not taken off because the region is well supplied with pipeline gas from Russia and Norway.

Hydrogen is considered "green" when produced from renewable power such as wind or sunshine through electrolysis.

H2U, which last year secured an investment from Japan's Mitsubishi Heavy Industries Ltd (TYO:7011), is working on several hydrogen projects in Australia and New Zealand. This includes the Eyre Peninsula Gateway project in South Australia, where a 75-MW electrolysis plant will be constructed, with an intended expansion to 1.5 GW throughout the 2020s.

"H2 is the perfect long-term solution to decarbonise industry, aviation and the transport of heavy goods," Javier Moret of RWE Supply & Trading stated, noting that Australia has excellent conditions for green hydrogen production, while RWE Supply & Trading has experience with shipping energy carriers, including Australian LNG.