RWE signed an agreement to supply an annual volume of 30,000 metric tons of renewable hydrogen for 15 years to help decarbonize TotalEnergies's Leuna refinery in the German state of Saxony-Anhalt.

Germany's top utility, RWE, said on Wednesday it has agreed to supply French oil major TotalEnergies with about 30,000 tonnes of green hydrogen a year from 2030, in one of the sector's biggest deals.

Under the agreement, RWE will supply 30,000 tpy of green hydrogen produced from its electrolyzer in Lingen, Germany, to TotalEnergies’ Leuna refinery for a 15-year period.

RWE and TotalEnergies have signed a 15-year power purchase agreement (PPA) under which RWE will supply over 30,000 tons of green hydrogen per year to TotalEnergies’ Leuna refinery in Germany from 2030 to 2044.

The agreement is a signal for the German market because fuel suppliers such as refineries are encouraged to gradually reduce their greenhouse gas emissions over time. Using 30,000 metric tons of green hydrogen in a refinery saves 300,000 metric tons of CO 2 per year. That’s how much 140,000 cars emit on average per year.

In a groundbreaking step for the hydrogen market, TotalEnergies and RWE have for the first time agreed on conditions for the purchase of green hydrogen over a period of 15 years. The agreement stipulates that TotalEnergies will purchase around 30,

Germany's biggest utility RWE reaches agreement to supply ~30K metric tons/year of green hydrogen to France’s TotalEnergies in 15-year deal from 2030, in one of the sector's biggest deals.