MOSCOW (MRC) -- Norway-based aluminum producer Norsk Hydro said Nov. 9 its hydrogen company Hydro Havrand has agreed with Royal Dutch Shell unit Shell New Energies to explore the potential of producing hydrogen from renewable electricity, reported S&P Global.
Hydro said that with green hydrogen it could further reduce the footprint of its low-carbon aluminum, as aluminum production is highly energy-intensive, while adding that it could use the hydrogen to help decarbonize its own as well as and Shell's own operations, and to supply customers in heavy industries, the maritime sector and road transport.
Under the memorandum of understanding, both companies will jointly produce and supply hydrogen produced from renewable electricity in hubs centered around Hydro and Shell's own business, the company said.
Both companies have started initial work under the agreement and will look to identify opportunities to produce and supply renewable hydrogen to Hydro, Shell and the broader market from locations in Europe, with the intention to expand into additional regions and locations over time, Hydro said.
Replacing natural gas for heating purposes in aluminum production with renewable hydrogen will contribute toward Hydro's global commitment to reduce its greenhouse gas emissions by 30% by 2030, it said.
Shell's Executive Vice President for Renewables & Energy Solutions, Elisabeth Brinton, said: "Hydrogen will play a key role in decarbonizing hard-to-electrify sectors, which is vital for accelerating progress toward a net-zero emissions future."
"By leveraging each other's strengths and capabilities, Hydro Havrand and Shell can work toward a shared goal of establishing integrated hydrogen value chains and ultimately a strong global market for hydrogen," Brinton said.
As MRC informed earlier, Royal Dutch Shell plans to reduce its refining and chemicals portfolio by more than half, it said in July 2020 without giving a precise timeframe. The move is part of the Anglo-Dutch company's plan to shrink its oil and gas business and expand its renewables and power division to reduce greenhouse gas emissions sharply by 2050.
Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,868,160 tonnes in the first nine months of 2021, up by 18% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,138,510 tonnes in January-September 2021, up by 30% year on year. Supply of propylene homopolymer (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding statistical copolymers of propylene (PP random copolymers) decreased significantly.
Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.