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In an exciting development in the renewable energy space, Shell is set to install a 100MW renewable hydrogen electrolyzer at its Energy and Chemicals Park Rheinland in Germany. This electrolyzer will generate up to 44,000 kilograms of green hydrogen daily using renewable energy. The project, designed to help reduce the site’s carbon footprint, is expected to start operations in 2027.

Unlocking Shell’s Massive Green Hydrogen Project: The REFHYNE II

The REFHYNE II project is the outcome of the successful execution of the original REFHYNE initiative. The new phase, funded by the European Climate, Infrastructure, and Environment Executive Agency (CINEA), aims to scale up Europe’s largest Proton-Exchange Membrane electrolyzer from 10 megawatts to a massive 100 megawatts. Notably, it aims to produce ~ 15,000 tons of green hydrogen annually.

As mentioned before, it will be installed at Shell’s Rheinland Energy and Chemicals Plant in Germany. The electrolyzer will produce green hydrogen and oxygen from a renewable energy source. This green hydrogen will then be integrated into the existing refinery systems to help reduce emissions from refinery operations.

Shell

source: REFHYNE

REFHYNE II: A Strategic Investment in Green Hydrogen

REFHYNE II benefits from supportive policies, such as the EU’s binding renewable hydrogen targets and Germany’s regulatory framework. Additionally, the project has received backing from the EU’s Horizon 2020 research and innovation program. This investment aligns with Shell’s goal to transform its Energy and Chemicals Parks into lower-carbon product sources.

Shell’s Downstream, Renewables and Energy Solutions Director Huibert Vigeveno noted,

“Today’s announcement marks an important milestone in delivering our strategy of more value with less emissions. Investing in REFHYNE II is a visible demonstration of our commitment to the hydrogen economy, which will play an important role in helping to decarbonise Shell’s operations and customer products.”

Noted in Shell’s press release, the company’s key partners in REFHYNE II include ITM Power (Trading) Ltd, ITM Power Germany GmbH, Linde GmbH, TECNALIA, ETM, SINTEF AS, and CONCAWE. Shell anticipates that the hydrogen produced will meet the EU’s renewable fuels of non-biological origin (RFNBO) standards. It has further elaborated that the REFHYNE II project will fit within Shell’s cash capital expenditure plans and surpass the internal rate of return (IRR) targets for its Renewables & Energy Solutions division. This was highlighted during last year’s Capital Markets Day organized by Shell.

Shell’s Bold Investments in Green Hydrogen

Greg Joiner, Executive Vice President of Shell Energy said,

“Shell’s commitment to renewable generation projects creates a path toward a sustainable future, where innovation and clean energy come together to power a brighter world. Across Europe through these renewable developments and further third-party offtake agreements, Shell Energy is supporting businesses to progress the energy transition by providing expertise and a range of renewable power solutions and bespoke offers.”

Shell Nederland and Shell Overseas Investments, subsidiaries of Shell plc, have decided to build Europe’s largest renewable hydrogen plant, Holland Hydrogen I. It will begin operations next year at the Rotterdam port. The 200 MW electrolyzer will produce up to 60,000 kilograms of renewable hydrogen daily. Additionally, the plant will use power from the offshore wind farm Hollandse Kust which is partially owned by Shell. The green hydrogen will decarbonize the Shell Energy and Chemicals Park Rotterdam, the key manufacturing hubs for petrol, diesel, and jet fuel.

Notably, Shell has always been a trendsetter in the green hydrogen space. In 2022, Shell and Kansai Electric Power collaborated on liquid hydrogen (LH2) supply chains to decarbonize their businesses Their partnership involved producing decarbonized hydrogen, deploying Shell’s liquefaction and storage technology, and using the hydrogen at Kansai, Japan’s thermal power plants.

Manufacturing green hydrogen is playing a pivotal role in Shell’s energy transition strategy supporting it to reach net-zero emissions by 2050. No wonder, this has marked a significant step toward a sustainable future.

Will the EU Meet its 2030 Hydrogen Goals?

In 2022 green hydrogen got a whole new perspective with a wide range of uses. It was being used in steel production, mobility, natural gas blending, e-fuels, and heating.  Thus, 41% of Europe’s clean hydrogen demand, amounting to 8.09 kt, came from these new hydrogen uses.

With Europe witnessing a rise in green hydrogen applications, the demand for it also grew. For instance, the Netherlands, the UK, and Austria rely on these applications for 100%, 90%, and 86% of their hydrogen consumption, respectively. In Estonia, it’s 100%, while in Switzerland, it’s 51%. Moreover, specific industries lead the demand in various countries. Germany’s refining sector accounts for 23%, Spain’s ammonia production makes up 80%, Iceland’s methanol production is at 90%, and Austria’s steel industry dominates at 83%. Check out the detailed report here: The EU hydrogen market landscape

Europe green hydrogensource: EU

Furthermore, the European Roundtable on Climate Change and Sustainable Transition aka ERCST’s latest hydrogen report revealed that Europe has etched a significant mark in the low-carbon hydrogen market. It is fueled by ambitious targets and government incentives.

  • The EU adopted a hydrogen strategy in 2020, aiming to install 6GW of electrolyzers by 2024 and 40GW by 2030.

The REPowerEU plan, introduced in 2022 to reduce reliance on Russian natural gas, set even higher goals. It targets 20 MTs of renewable hydrogen use by 2030, with 50% from domestic production. BloombergNEF estimates that meeting this domestic target requires 125GW of electrolyzer capacity, which is 3x of its 2030 target.

EU Member States have also set their electrolyzer targets separately. It totals to 54.3GW by 2030. These national goals align with the EU’s hydrogen strategy but fall short of the REPowerEU target. However, BloombergNEF forecasts that EU countries will deploy a maximum of 23GW by 2030, based on the ongoing projects and policies. On the downside, this study indicates that most countries may not meet their national electrolyzer goals.

Europe green hydrogen

Overall, with a solid investment backup, the REFHYNE 2 project will push innovation to its peak. Consequently, Shell’s experienced team will manage the major scale-up with precision, thereby advancing green hydrogen significantly to achieve the EU’s target.

The post Shell Powers Europe With A Mega 100MW Green Hydrogen Electrolyzer appeared first on Carbon Credits.

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The Strategic Case for Nature-Based Carbon Investments

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Nature-based carbon investments deserve consideration when they address a specific business dependency and produce outcomes you can measure. Imagine Moonbucks, a global coffee roaster planning next season’s espresso blend. It is considering natural Grade 4 coffee from Jimma, in southwestern Oromia, Ethiopia. Its sourcing decisions affect the roasting schedule and the cash tied up in coffee purchases. Moonbucks needs to understand which measures could protect that supply, what they would cost and how it would judge the results.

1. Define the sourcing problem before choosing a project

Moonbucks needs a dependable component for its espresso blend. Its procurement team wants continuity of volume and an agreed cup profile. Replacing a shipment at short notice could require new sample approval and changes to the blend, and given the schedules for cultivation, processing, and freight delivery, is practically impossible. Moonbucks needs to get this right, and its initial concern is inconsistent deliveries. It commissions an assessment of the supplying farms and post-harvest chain. The questions cover land condition, harvest availability and whether drying or storage problems are affecting saleable lots.

This distinction changes the investment brief. A tree-planting proposal cannot be assumed to fix drying problems. Better storage cannot restore eroded land. The team must establish which problem exists before selecting the response.

CCC’s guide to finding nature-based solutions in your supply chain explains where to look. Here, the next task is to turn a broad concern into a testable proposal.

2. Develop nature-based carbon investments around the actual supply chain

The assessment would trace Moonbucks’ purchases back through the exporter and supplying producer groups. Which farms supply the contracted lots? Who controls land-management decisions? How long does the buyer expect to maintain the purchasing relationship?

Furthermore, Jimma natural Grade 4 cannot be treated as interchangeable with every Ethiopian coffee. Moonbucks would need to test any substitute against its own blend and quality requirements.

Suppose Moonbucks’ assessment identifies an opportunity to maintain shade trees and restore vegetation along exposed streambanks. The IPCC describes agroforestry as a way to store carbon in vegetation and soil, with potential benefits for erosion control and water quality.1 Moonbucks would need local advice on species, growing conditions and maintenance before deciding how these measures fit its sourcing plan.

The proposal now has a defined sourcing connection and a candidate intervention. The next steps are to test its effect on production, assess carbon eligibility and build the financial case.

3. Compare the proposal with other ways to protect supply

WBCSD’s Nature-based Solutions Blueprint recommends comparing nature-based options with other responses across their benefits and costs.2 For Moonbucks, that means evaluating the landscape proposal alongside drying improvements, storage controls and alternative sourcing arrangements.

The product’s natural-process designation matters. Moonbucks should examine the drying and dry-milling chain alongside land conditions. Its team would check storage practices, contamination risks and incoming-lot quality to see whether problems arise before or after the coffee leaves the farms.

The revised proposal might combine land stewardship with separate post-harvest controls. Each component needs its own purpose and budget. A sustainability label should not obscure which activity is expected to solve which problem.

The project develops as the evidence improves. Its scope should follow the diagnosis rather than preserve the first idea unchanged.

4. Establish what the carbon outcome could count toward

Moonbucks’ sustainability team now tests the proposed carbon case separately from the sourcing case. Is the objective a measurable change in Moonbucks’ value-chain emissions, verified credits for separate voluntary use, or distinct outcomes under carefully defined arrangements?

Scope 3 covers value-chain emissions. A purchasing relationship alone does not prove that a farm intervention can be included in Moonbucks’ inventory. The team needs an applicable accounting method, defensible boundaries and evidence supporting attribution.

SBTi’s FLAG Guidance (forest, land and agriculture), version 1.2, says purchased credits used as offsets cannot meet near-term FLAG or energy and industry targets. Eligible land-based removals are subject to accounting requirements.3 Moonbucks needs to test its proposal against those rules before including an outcome in its targets.

For Moonbucks’ Jimma proposal, maintaining existing trees and establishing new vegetation could involve different carbon questions. Specialists must examine the baseline and additionality, meaning what changes because the project proceeds. They must also assess measurement and the risk that stored carbon is lost. CCC’s MRV and additionality article introduces those tests.

Until that work is complete, Moonbucks should not budget an assumed Scope 3 reduction or credit-sale receipt. Direct emissions reductions remain the priority.

5. Build a financial case that survives weaker assumptions

Moonbucks’ finance team would now build a multi-year budget. UNEP’s State of Finance for Nature 2023 compares current finance with the investment needed to meet climate, biodiversity and land-restoration goals.4 The company would cost its proposed activities, farmer participation and ongoing monitoring. Verification, where required, is a separate expense. Maintenance and responsibility for replacing failed plantings must remain visible after the initial establishment budget ends.

Operational benefits need equally careful treatment. If fewer rejected lots reduce emergency purchasing, count that saving once. Do not add “supply resilience” as another financial benefit when it represents the same avoided cost.

Moonbucks should compare a base case with slower benefits, higher implementation costs and no carbon revenue. It should also distinguish production outcomes from quality and shipment outcomes. A single good harvest would not prove that the landscape intervention caused better delivery performance.

A project can remain worth funding even when its carbon case needs more work. That decision must rest on the operational evidence and the company’s objectives, without unsupported environmental claims.

6. Fund a pilot with a clear expansion decision

Moonbucks’ first approval would fund a bounded pilot, rather than commit the entire sourcing program. Before spending, Moonbucks would agree on participating farms, responsibilities and the evidence needed at review.

Its scorecard could track farmer participation, implementation costs and plant survival, alongside accepted coffee volumes and lot-quality results. Carbon measurements would follow the selected method. Farm-level traceability must connect the intervention to the actual sourcing relationship.

Suppose Moonbucks’ review later finds that storage changes explain most quality improvements, while the land measures need longer observation. Those findings would shape the next decision: expand the proven component, adjust the landscape work or pause further spending. They would not justify crediting all improvements to tree planting.

This gives nature-based carbon investments a practical place in a multi-year strategy. Funding increases as the evidence supports it, and the project can change direction before a larger commitment.

Discuss a sourcing opportunity with CCC

Carbon Credit Capital’s nature-based supply-chain investment service uses its Dual-Value Model to examine supply-chain economics alongside potential sustainability outcomes.

Schedule a consultation to discuss your sourcing exposure and the questions to resolve before allocating capital.

Sources

  1. Intergovernmental Panel on Climate Change (IPCC), Climate Change 2022: Mitigation of Climate Change, Chapter 7, Agriculture, Forestry and Other Land Uses, section 7.4.3.3 (Agroforestry).
  2. World Business Council for Sustainable Development (WBCSD), Nature-based Solutions Blueprint, 5 June 2024.
  3. Science Based Targets initiative (SBTi), Forest, Land and Agriculture Science-Based Target-Setting Guidance, version 1.2, March 2026, section 3.1.4, pp. 37–38.
  4. United Nations Environment Programme (UNEP), State of Finance for Nature 2023, 2023.
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Carbon Footprint

How to buy plastic credits, and what to check before you do

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A plastic credit funds the collection of plastic waste in places where no formal system exists to collect it. Each credit represents a measured, independently audited quantity of plastic taken out of the environment or returned to use, tracked on a public registry.

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Carbon Footprint

EU carbon credit claims after 27 September 2026

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EU carbon credit claims changed on 27 September 2026, the day the Directive (EU) 2024/825 began to apply across the European Union. The change is narrow. It changes how a company can talk about the credits it buys. A product can no longer be called neutral on the strength of compensation alone; however, every specific, evidenced statement about what a company measured, reduced, and funded stays fully available.

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