Ref. Ares(2022)33479 - 04/01/2022
Cabinet of Commissioner Kadri SIMSON - Minutes of Meeting
MEETING CONCLUSIONS
Title
VideoConference report Kadri Simson with Shell representatives
Date
12-06-2020
Participants
Ext :
,
,
COM: Kadri Simson, Stefano Grassi,
,
Ares initial request : n/a
Disclosure authorization : ܈ YES - ܆ NO - ܆ Partial (pls highlight unauthorized parts)
Issues raised
(
and
(
& follow-up
) presented Shell’s vision on energy system integration and
hydrogen. The following points were raised by Shell:
x
Green hydrogen
Shell invests in renewable electricity and green hydrogen as complementary solutions (incl.
electric charging stations and hydrogen refuelling stations) for the decarbonisation of transport,
industry and buildings.
Shell is planning a 200 MW electrolyser, powered by offshore wind park under tendering, and to
be operational in 2023. Initial market will be the Shell refinery, but ultimate market is fuel cell
trucks (market where gap between the cost of hydrogen and the price of the dominant fuel is
smallest).
Shell is also engaged in production of blue hydrogen (where support for CCS is key), and a 10
MW electrolyser in Cologne.
x
Policy support for green hydrogen
Shell’s key concern for investment in renewable electricity production is sufficiently high
electricity prices, whilst key concern for green hydrogen is sufficiently low electricity prices. Shell
is integrated and covers both elements.
Power market reforms are key, including support for
cross-border flows, the use of distributed resources, and revenues for providing grid services.
Furthermore, a
virtuous circle of demand and supply need to be supported through regulatory
options to
support production and by creating demand.
REDII is flexible tool to support both supply and demand, but certainty needed on definition of
‘additionality’.
Other options to
support demand could be tax credits for fuel cell vehicles, emission standards
for cars, support for development of fuel cell vehicles.
Creating of markets for green products and green supply chains is also crucial. Shell has
developed digital tool to track carbon footprint of its supply chains.
x
Hydrogen strategy and recovery package
Shell’s expectation is that the strategy brings different policy instruments together, and provides
direction of travel. Also, looking forward to quick decision on Recovery Package so that
instruments are available in early 2021.
Next steps
Request by Commissioner KS for Shell’s support for the establishment of a Climate Law to ensure
investor certainty. Possible site visits to Shell’s electrolyser, electric charging and hydrogen
refuelling stations in Germany once travelling becomes possible again.