Energy company RWE and steel producer ArcelorMittal have signed a memorandum of understanding (MoU) to build and operate offshore wind farms and hydrogen facilities in Germany.
The wind farms and hydrogen facilities will provide renewable energy and green hydrogen needed to manufacture low-emissions steel at ArcelorMittal’s steelmaking sites in the country.
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ArcelorMittal requires clean energy on a large scale to decarbonise its production sites in Bremen, Hamburg, Eisenhüttenstadt and Duisburg.
The two firms are evaluating options for joint participation in tenders for offshore wind farm sites in the North Sea.
They also want to work together on the development of green hydrogen, by exploring areas where electrolysis facilities can be constructed to supply the steel production sites in Bremen and Eisenhüttenstadt.
They intend to begin with a 70MW pilot facility by 2026, with the aim to scale up to gigawatt-scale projects in the long term, subject to approval of public funding.
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By GlobalDataRWE Renewables CEO for offshore wind Sven Utermöhlen said: “Electricity from renewable energies and green hydrogen must become the hallmark of industrial production in Germany. Industry needs both in large quantities as soon as possible in order to achieve its climate targets.”
ArcelorMittal Germany CEO Reiner Blaschek 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.”
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Image: ArcelorMittal requires clean energy on a large scale to decarbonise its production sites. Credit: Janno Nivergall from Pixabay.
