German utility EWE has unveiled plans to install a 500MW electrolyser at Tree Energy Solutions’ (TES) planned “green gas” and hydrogen import terminal in Wilhelmsaven, northwest Germany.

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The green hydrogen facility, which would become operational in 2028 and could later be expanded to 1GW, the companies said in a joint statement, adding that their memorandum of understanding is “in line with Germany’s strategic energy policy to develop clean energy generated by the North Sea and broaden the possible supply for hydrogen”.

The companies do not say where the renewable energy required to produce green hydrogen would come from, but a project that size located on the North Sea coast would likely require energy from a gigawatt-scale offshore wind farm.

Fortescue Future Industries, led by billionaire iron-ore magnate Andrew Forrest, recently bought a €130m stake in TES’ Wilhelmshaven Green Energy Hub, which plans to import “e-methane” from Saudi Arabia from 2028, and natural gas from 2025, due to Germany’s scramble to replace Russian gas.

The e-methane would be produced from green hydrogen and captured CO2 using the well-established Sabatier methanisation process.

As liquefied methane has been shipped around the world for decades — and used as a shipping fuel — the company would be able to sidestep many of the cost and logistical problems faced by those looking to ship liquefied hydrogen or hydrogen-derived ammonia.

Once delivered, the synthetic methane would be reformed to produce green hydrogen, with the carbon captured and shipped back to Saudi Arabia to be reused in more e-methane production, forming a “closed loop” cycle.

Critics have said that such a process would be prohibitively expensive and should not be taken seriously.

However, the German government has given the project priority permitting status in a bid to expedite construction of the Wilhelmshaven terminal.