German gas firm VNG AG to build 500MW green hydrogen project with HyCC

As Europe strives towards decarbonisation goals with aggression, German energy company VNG AG, along with its subsidiary VNG Handel & Vertrieb GmbH (VNG H&V), is partnering with Dutch hydrogen conglomerate HyCC to develop a 500-megawatt electrolyzer for green hydrogen production in Lutherstadt Wittenberg, Germany. This electrolyzer will use renewable electricity to produce green hydrogen from water, aiding local industries in reducing CO2 emissions.

The green hydrogen produced from the upcoming project will replace natural gas in industries like SKW Piesteritz, minimizing reliance on fossil fuels. It has been held that the planned connection to Germany’s hydrogen network will enable the GreenRoot project to supply other industrial clients in the Central German chemical triangle, contributing to their decarbonization efforts.

The project partners will also explore opportunities to deliver heat from the plant to the municipal utilities of Lutherstadt Wittenberg. The electrolyzer will be constructed on the site of the city’s former waterworks, located near the Piesteritz agro-chemical park and in proximity to SKW Piesteritz, which plans to transition its energy supply to green hydrogen.

VNG AG and VNG H&V bring expertise in hydrogen market development, while HyCC, as a seasoned technical partner, will contribute its proficiency in electrolysis technology.

The approval and consultation phase is set to begin in 2025, with a final investment decision anticipated in 2026. The facility is planned to commence operations in 2029.

Ulf Heitmüller, CEO of VNG AG, held on the new partnership, “VNG is currently in the midst of an ambitious transformation process towards green gases such as biogas and green hydrogen. We are therefore delighted to be tackling this groundbreaking project in Lutherstadt Wittenberg together with HyCC and are convinced that we are launching a promising project that fits perfectly into its environment and is already receiving support from local partners.”

“We build on many years of operational experience with electrolysis technology and believe that Europe, and Germany in particular, is well positioned to be a global front runner in green hydrogen.” says Michel Gantois, CEO of HyCC.

Konstantin von Oldenburg, Managing Director of VNG H&V, stated, “The domestic production of green hydrogen in cooperation with our partners and our local customers should strengthen the Central Germany region as an important industrial location and pave the way for sustainable value creation in this region.”