ArcelorMittal and German energy company RWE have signed a memorandum of understanding to advance the production of CO2-neutral steel by means of wind farms and hydrogen plants.
They will collaborate in the construction and operation of offshore wind farms and hydrogen plants for the renewable energy and green hydrogen needed to produce low-emission steel in Germany, Kallanish hears from the steelmaker.
In order to decarbonise its production sites in Bremen, Hamburg, Eisenhüttenstadt and Duisburg as planned, ArcelorMittal Germany needs renewable energies on a large scale, the company states. Therefore, RWE and ArcelorMittal are examining options for joint participation in tenders for offshore wind farm sites in the North Sea.
The companies also want to work together on the development of green hydrogen, and will look for places where electrolysis plants can be built to supply the steel production sites in Bremen and Eisenhüttenstadt. Initially, a 70MW pilot plant is to be built by 2026. In the long term, the companies intend to expand their cooperation to projects up to the gigawatt range, subject to the approval of public funding.
With ArcelorMittal as a guaranteed buyer of the green electricity and hydrogen, the two companies see excellent opportunities for a viable partnership. RWE and ArcelorMittal intend to conclude long-term purchase agreements for wind power as well as for green hydrogen.
Christian Koehl Germany