ArcelorMittal and RWE collaborate on offshore wind, hydrogen for low emission steelmaking

They intend to develop, build and operate the facilities and drive forward the production of carbon-neutral steel, with plans to replace coal with the greener alternatives as the main source of energy in steel production

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ArcelorMittal and RWE have agreed to work together on offshore wind farms and green hydrogen facilities required to produce low emission steel in Germany.

They have signed a memorandum of understanding to develop, build and operate the facilities and drive forward the production of carbon-neutral steel, with plans to replace coal with the greener alternatives as the main source of energy in steel production.

The two companies are also assessing options for joint participation in tenders for offshore wind farm sites in the North Sea.

In addition, they want to work together on green hydrogen development, jointly looking for areas where electrolysis plants can be built to supply steel production sites in Bremen and Eisenhüttenstadt.

They plan to start with a 70MW pilot plant by 2026, with the intention to increase to gigawatt-scale projects in the long term, subject to public funding approval.

Reiner Blaschek, CEO ArcelorMittal Germany said: “ArcelorMittal Germany is embarking on a radical transition to ensure we reach our CO2 emissions reduction targets, meaning that the energy used to make steel will need to be clean energy. The partnership we have announced with RWE today is significant for a number of reasons: it will provide us with the renewable, affordable electricity and green hydrogen that we need to produce low-emissions steel while remaining competitive in a global market. It also offers vital security in the supply chain, by integrating the supply of energy and hydrogen into our business.

“We are looking forward to working with RWE on this highly important project and benefiting from their experience and know-how, as we continue to lead the industry in the decarbonisation of steelmaking in Germany and beyond.”

ArcelorMittal has set a target to reduce carbon emissions by 35% by 2030 in Europe and a group-wide target to become carbon-neutral by 2050.