Executive Summary
Germany’s major utility RWE has announced plans for a new combined cycle gas-fired power plant with a nominal output of approximately 850 megawatts (MW) at its former power station site in Voerde, in the North Rhine-Westphalia region. Once commissioned, the plant will be capable of burning at least 50 % hydrogen, a key step towards a full hydrogen operation in future. The facility is aligned with the German government’s strategy for hydrogen-ready power plants and the phase-out of coal generation.
Project Overview & Technical Features
Location & Capacity
- The proposed facility will be constructed on the site of RWE’s former power station in Voerde, leveraging existing infrastructure and regional assets.
- It is rated at some 850 MW, placing it among the larger planned hydrogen-capable power plants in Europe.
Hydrogen Capability
- At commissioning the plant will be designed to burn a fuel mix of at least 50 % hydrogen with natural gas.
- The design intention is to retrofit or convert to 100 % hydrogen operation at a later stage, in line with RWE’s hydrogen readiness ambition.
Partnership & Engineering
- RWE has selected a consortium of Técnicas Reunidas and GE Vernova to deliver the engineering, procurement and construction of the plant.
- One advantage is the site’s proximity to the planned hydrogen pipeline “core network” in Germany, which will facilitate future hydrogen fuel logistics.
Timeline & Regulatory Framework
- The plant is targeted to begin operations around 2030, contingent upon winning the yet-to-be-issued German tender and securing regulatory approvals.
- The German federal government is establishing a tender framework for hydrogen-compatible gas-fired (controllable) capacity to support the energy transition and coal phase-out.
Strategic & Market Implications
Decarbonisation & Energy Transition
- The project underscores RWE’s commitment to decarbonisation by enabling a controllable power station that can transition from natural gas to hydrogen, thus reducing CO₂ emissions over time.
- It contributes to Germany’s strategy to replace or complement coal-fired plants with flexible, low-carbon capacity, supporting grid reliability as renewables penetration rises.
Technology Leadership
- By targeting 50 % hydrogen from the outset, the plant can be seen as a demonstrator of hydrogen-ready infrastructure at scale.
- RWE’s selection of leading engineering firms points to confidence in the deliverability of hydrogen-capable gas turbines and supporting systems.
Regional Economic Benefits
- The Voerde site will benefit from continued industrial use, job retention and value creation in the region. RWE specifically mentions local economic impact as part of the rationale.
- The proximity to hydrogen infrastructure and existing grid assets provides cost and time advantages compared with wholly new sites.
Key Challenges & Considerations
Tender & Regulatory Uncertainty
- The project hinges on Germany finalising its tender and subsidy framework for hydrogen-ready gas-fired plants; delays or policy shifts could affect timelines.
- Clear terms on capex/opex support, hydrogen fuel cost and contract duration will be critical to investment viability.
Hydrogen Supply & Economics
- While design allows for 50 % hydrogen, scaling to 100 % will require significant hydrogen production and supply chain infrastructure, which remains nascent.
- Hydrogen costs currently remain higher than natural gas, so business cases may rely on subsidies or premium pricing for low-carbon power.
Conversion & Operational Flexibility
- Balancing a mixed-fuel plant (gas + hydrogen) requires careful engineering to ensure reliability, efficiency and emissions control across changing fuel ratios.
- Future conversion to full hydrogen will require technical modifications, sufficient fuel supply and regulatory alignment.
Outlook & Next Steps
- Short term: RWE will advance approval planning, early engineering work and prepare to respond to the German tender.
- Mid term: If awarded, construction could begin shortly with a commissioning target around 2030.
- Long term: The plant could serve as a blueprint for other hydrogen-ready, controllable generation assets in Germany and Europe, helping integrate variable renewables and phase out coal.
- Stakeholders should watch for announcements on: tender criteria from the German government, hydrogen pipeline and storage infrastructure developments near Voerde, and technology supplier contracts for the turbine and hydrogen-burning components.
Conclusion
RWE’s proposed 850 MW Voerde power plant represents a significant milestone in the evolution of hydrogen-capable power generation in Germany. With the planned 50 % hydrogen fuel mix at commissioning and the ambition for full hydrogen conversion, the project bridges today’s gas-fired generation and tomorrow’s hydrogen-based power infrastructure.
It aligns with national policy for the energy transition and positions RWE and its engineering partners as leaders in flexible, low-carbon generation. Nevertheless, success remains contingent on regulatory clarity, cost-effective hydrogen supply and robust engineering to deliver the mixed-fuel capability reliably. For investors, policymakers and energy transition observers, Voerde offers an important case study of how controllable generation can evolve in the hydrogen era.
