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

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.

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.

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.