The production site is in Lubmin, Germany, and will be able to produce over 6,000 tonnes of green hydrogen a year during its first phase.
Further development phases are expected to increase capacity to over 1 gigawatt, with annual production exceeding 60,000 tonnes of green hydrogen.
Green hydrogen is made by electrolyzing water powered by renewable energy such as wind or solar. It is touted as a fuel which can help decarbonize heavy-emitting industries and transportation.
The Lubmin plant will be built and operated by HH2E and will produce green hydrogen to the transport industry and large-scale energy and industrial consumers, JLEN said.
A final investment decision is expected in the coming months, with construction of the plant starting straight afterwards, it added.
($1 = 0.9123 euros)
(Reporting by Nina Chestney)