Siemens and Shell sign memorandum of understanding to advance low-carbon energy solutions
Siemens Smart Infrastructure and Shell Global Solutions International BV have signed a Memorandum of Understanding (MOU) to collaborate on the development of low-carbon and highly efficient energy solutions that support the energy transition. The agreement will focus on projects that produce green hydrogen for industrial applications at Shell and its customers, as well as strengthening collaboration in the areas of biofuels and circular chemistry. Under the MoU, Siemens and Shell will create solutions that increase energy efficiency and generate sustainable energy, including but not limited to digitalization, efficient networks and generation, distribution and the application of green hydrogen. The partnership, linked to Siemens’ Electrification and Automation business unit, has the potential to enhance synergies for both parties. While Siemens intends to work with Shell to accelerate the latter’s transition to net-zero operations, Shell seeks to provide Siemens and its subsidiaries with low-carbon products that reduce emissions throughout the supply chain, in Siemens operations and in the use phase of Siemens products consisting of, but not limited to, the supply of biofuels.
“Siemens is committed to decoupling electrification from fossil fuels. Partnerships are key to driving this effort and making the transition to sustainable energy supplies,” said Stephan May, CEO of Electrification and Automation at Siemens Smart Infrastructure. “Partnering with Shell aligns perfectly with Siemens’ vision to electrify the world, while helping industrial and infrastructure customers reduce their carbon footprint and achieve their sustainability goals.
Siemens has been an electrical equipment – switchgear, pumps, transformers, electrical Scada – supplier to Shell for over a decade. Over the past few years, it has evolved into a collaborative solutions provider, spanning the full range of its electrification and automation portfolio and further enhanced by Joint Industry Program 33 (JIP33) equipment standardization, a set of industry standard supply specifications for oil and gas. industry. Shell attaches great importance to the relationship with Siemens, which paves the way for accelerating the energy transition.
“Close collaboration with partners is key to delivering low-carbon energy solutions for the future. Building on our existing relationship with Siemens, I expect this MoU to enable our teams to work even more closely together,” said Graham Henley, Senior Vice President of Engineering and project capacity at Shell. “Siemens’ wide range of expertise in electrification and automation, combined with Shell’s engineering and project delivery capability and ambition in the energy transition, will prove to be a powerful combination. “
The MoU stems from this relationship and collaboration on several projects since 2010. One of the key milestones in the promotion of green hydrogen is the recently announced construction of Shell’s Holland Hydrogen 1 (HH1) project on the Maasvlakte in Rotterdam. With a capacity of 200 megawatts and 60 tons of hydrogen per day, HH1 is expected to be one of the largest green hydrogen production plants in the world and the largest in Europe. Siemens’ electrification and automation business plays an important role in the planning, construction and execution of the project, as a provider of power distribution and substation automation. It will also be associated with the operation of the plant, whose commissioning is scheduled for 2025, through a maintenance contract. The plant will produce hydrogen from electricity produced by wind turbines in the North Sea.
Siemens and Shell have adopted a collaborative and agile way of working on this major project. Close consultation and day-to-day decision-making resulted in nearly half the development time – from designing the power distribution system, from 18 months to 9 months, from the publication of this release.