Shell and ITM Power are to build the world’s largest hydrogen electrolysis plant in Germany.

With a peak capacity of 10MW, the Rhineland site will produce hydrogen to be used for the processing and refining of products, as well as testing hydrogen technology and exploring its applications.

The consortium, which also includes SINTEF, thinkstep and Element Energy has now secured €10 million (£8.8m) in funding from the European Fuel Cell Hydrogen Joint Undertaking, approximately half of the project’s total costs.

Detailed technical planning and the approval process will now begin. The plant is scheduled to be operational by 2020.

Lori Ryerkerk, Executive Vice President of Shell Manufacturing, said: “This new unit at Rhineland enables hydrogen to be made from electricity rather than natural gas.

“If powered by renewable electricity, the green hydrogen will help reduce the carbon intensity of the site – a key goal for us.”