The facility located in Falkenhagen aims to produce hydrogen from additional renewable energy and store the generated gas in the country’s existing natural gas pipeline network.

Hydrogenics president and CEO Daryl Wilson said the electrolysis of water into hydrogen whenever surplus electrical power is available is the optimal pathway to increase the renewable content in the energy system mix.

"When compared to current utility-scale solutions, Power-to-Gas offers unmatched energy storage capacities," Wilson added.

"Over a 24 hour period, the Falkenhagen facility will be able to store over 30 MWh of energy."

The hydrogen to be supplied to the pipeline network though is relatively a small percentage when compared to the total capacity, the small quantities will represent significant energy storage capacity and electrical grid support flexibility.

Hydrogenics will construct the Power-to-Gas project which will include supply, installation, connection and commissioning of the hydrogen production facility including gas compression, master controls, and a 5-year service and maintenance agreement.

The project is expected to have the generated hydrogen go online in 2013.