Shell steps back from Oz electrolyser pilot

Shell is scaling back its involvement in an electrolyser pilot project in Australia located at BlueScope  Steel’s Port Kembla Steelworks in the Illawarra, in New South Wales, Australia.

In its latest annual report, published on 15 August, BlueScope Steel confirmed it continues to progress its assessment of a hydrogen electrolyser and a hydrogen hub in the Illawarra.

“BlueScope is continuing to work with a range of industry and research organisations on our plans, noting that Shell will now pursue its involvement in this project as a supporting partner rather than lead partner,” the steel manufacturer stated.

Shell and BlueScope signed an MoU in December 2021 to work together to “explore and develop” renewable hydrogen projects at BlueScope’s Port Kembla Steelworks, starting with an investigation into designing, building and operating a pilot-scale 10MW renewable hydrogen electrolyser to explore and test the use of green hydrogen in the blast furnace at the Port Kembla Steelworks.

The MoU provided for BlueScope and Shell to collaborate with other organisations to develop a “hydrogen hub” in the Illawarra.

A Shell spokesperson said: "Following signing an MoU in December 2021, Shell and BlueScope have been undertaking detailed scoping and assessment of the hydrogen electrolyser and hydrogen hub projects. 

"Shell evaluates projects such as these based on commercial and strategic considerations. As part of this process, Shell concluded the proposed projects were not a strategic fit. 

"Shell continues to pursue hydrogen opportunities both in Australia and globally. Globally, Shell recently announced its largest single investment decision in renewable hydrogen production to date, with the construction of a 200 MW electrolyser in The Netherlands.

"We have enjoyed working collaboratively with the BlueScope team to explore the development of a hydrogen hub in Port Kembla and hope to continue to support their net zero journey."