Siemens to build one of Germany’s largest carbon-free hydrogen generation plants in
Wunsiedel
• Bavarian Minister-President Dr. Markus Söder kicks off H2 lighthouse
project for energy transition in Germany
• With 8.75 megawatts of electrical power, it will be one of Germany’s largest
carbon-free hydrogen generation plants
• Siemens Financial Services, Rießner Gase GmbH and SWW Wunsiedel
GmbH are investors in Wunsiedel’s WUN H2 operating company
• Plant to go into operation in summer 2022 with an annual production of up
to 1,350 tons of hydrogen and CO2 savings of up to 13,500 tons
• WUN H2 to supply Northern Bavaria, Thuringia and neighboring part of
Czech Republic with hydrogen
Kickoff for one of the largest green hydrogen projects in Germany: The official
groundbreaking ceremony in Wunsiedel marked the start of construction of a
hydrogen generation plant with a capacity of 8.75 megawatts. The facility will
produce up to 1,350 tons of hydrogen per year using only renewable energy, for
example from solar or wind power. Using the generated hydrogen in transportation
and industry allows for CO2 savings of up to 13,500 annually. Siemens Smart
Infrastructure is the general contractor for the entire plant, with Siemens Financial
Services (SFS) participating in the equity financing as well as holding a share of 45
percent in the operating company WUN H2 GmbH. The electrolyzer will be supplied
by Siemens Energy. Attended by Dr. Markus Söder, Minister-President of Bavaria,
Hubert Aiwanger, Bavarian State Minister of Economic Affairs, Regional
Development and Energy, Thorsten Glauber, Bavarian State Minister of
Environmental and Consumer Protection Affairs, Professor Dr. Ralf P. Thomas,
Chief Financial Officer of Siemens, Dr. Philipp Matthes and Dr. Thilo Rießner,
Managing Directors of WUN H2, Nicolas Lahovnik, Mayor of Wunsiedel, Marco Krasser, Managing Director of SWW Wunsiedel, and Andreas Schmuderer,
Siemens Project Manager, the groundbreaking ceremony marked the start of
construction of this lighthouse project.
In his remarks, Minister of Economic Affairs Hubert Aiwanger said: “The WUN H2
project is an important contribution to implementing Bavaria’s hydrogen strategy.
Green hydrogen ‘Made in Bavaria’ demonstrates domestic technological expertise
and increases acceptance through local value creation.” Minister of Environmental
Affairs Thorsten Glauber added: “Hydrogen is a key technology on the road to a
climate-neutral future. The energy transition will only succeed if there are many
innovative approaches like the one pursued in Wunsiedel.”
According to a recent analysis by the OECD, global energy demand is estimated to
increase by 80 percent by 2050. Meeting this demand while addressing the
challenges of climate change will require massive investments in clean energy
generation, power distribution, and digitalization. To this end, all energy-consuming
sectors, including transportation and industry, must push ahead with their
decarbonization efforts.
The plant will be constructed at Wunsiedel Energy Park and connected to the
existing Siemens battery storage facility and adjacent industrial enterprises. These
can use waste heat, or the oxygen split off during electrolysis. This connected
infrastructure will serve as a model for the whole of Germany.
“Converting our energy supply to new, climate-neutral energy sources is one of the
main objectives of the energy transition. Hydrogen plays a key role in this,” said
Siemens CFO Professor Dr. Ralf P. Thomas at the groundbreaking ceremony. “In
this respect, Wunsiedel, with its existing distributed energy system and the use of
digital technology, is a lighthouse project for a sustainable energy future.” For
Siemens, digitalization and sustainability are increasingly becoming the focus of
business activities. At an event for investors, Siemens had presented its new
“Degree” framework for sustainable commitment to environmental, social and
governance issues.
For the project in Wunsiedel, SFS, the financing arm of Siemens, is in charge of
commercial project development and structuring the financing. SFS holds a 45
percent share in the project’s operating company WUN H2; Rießner Gase GmbH also holds 45 percent and Stadtwerke Wunsiedel (SWW) the remaining 10 percent.
At the same time, SFS was able to implement non-recourse project financing, i.e.
without counter-liability to the shareholders, with UmweltBank as an external lender
to secure financing for the project. “WUN H2 is a pilot project for Germany that will
demonstrate innovative technology in practice and ultimately prove the feasibility of
industrial production of green hydrogen. Our concept is scalable and can easily be
transferred to other locations. If every city had its own H2 plant, the energy transition
would already be much further along,” said Dr. Philipp Matthes, Managing Director
of WUN H2 GmbH.
If hydrogen is produced through the electrolysis of water by only using power from
renewable energy sources for this process, it is referred to as “green”, i.e. carbonfree hydrogen. The Wunsiedel plant uses Siemens Energy’s most advanced
electrolyzer. “Green hydrogen plays a crucial role, especially in the decarbonization
of industries and the transportation sector,” said Dr. Christian Bruch, CEO of
Siemens Energy AG. “With our latest generation of electrolyzers, we are continuing
to commercialize this technology. The plant not only supplies green hydrogen from
renewable energy sources, it also makes full use of the resulting byproducts, oxygen
and waste heat.”
The hydrogen is delivered via truck trailers to local and regional end customers for
local distribution, mainly in the regions of Upper Franconia, Upper Palatinate,
Thuringia and Saxony as well as Western Bohemia (Czech Republic). The plant
also helps alleviate grid bottlenecks and provides flexibility for the power grid. The
option to build a public hydrogen filling station for trucks and buses at the same
location will make it possible to create an offering for carbon-free heavy goods
transportation as well as regional public transportation.
“Thanks to our ‘Wunsiedler Weg’ concept, we’re ideally positioned to achieve
climate neutrality. Hydrogen technology will position Wunsiedel as a model city for
the energy future far beyond the region, and indeed beyond Bavaria,” said
Wunsiedel Mayor Nicolas Lahovnik. “This allows us to create new and sustainable
forms of energy use for our residents.”
The new hydrogen production plant is scheduled to go into operation in the summer
of 2022.