Germany – In order to supply the renewable energy and green hydrogen needed to produce low-emission steel in Germany, RWE and steel producer ArcelorMittal have signed an agreement to collaborate on the development, construction, and operation of offshore wind farms and hydrogen facilities.
With a goal of replacing coal with wind power and green hydrogen as the primary source of energy in steel production at ArcelorMittal’s steelmaking sites in Germany, the partnership is focused on advancing the production of carbon-neutral steel. ArcelorMittal Germany requires a significant amount of renewable energy to decarbonize its production sites in Bremen, Hamburg, Eisenhüttenstadt, and Duisburg as intended.
RWE and ArcelorMittal are considering options for collaborating in bids for North Sea offshore wind farm sites. Success depends on the ongoing revision of the “Wind Energy at Sea Act” (WindSeeG), which will fundamentally alter the cost structure of the German offshore wind industry. Financing wind farms would be more difficult and would send the wrong pricing signals to the market by making wind power unnecessarily expensive if the law were to establish “negative bids” in offshore wind tenders. If energy-intensive industries in Germany, such as the steel industry, which competes internationally, are to survive, competitive electricity prices are a must. RWE and ArcelorMittal have a strong conviction that German green steel has the potential to set a new standard for the production of steel with low carbon emissions.
Green hydrogen
In order to supply the steel production facilities in Bremen and Eisenhüttenstadt, RWE and ArcelorMittal want to work together to develop green hydrogen. To this end, they are looking for locations where electrolysis plants can be built, with the goal of starting with a 70 MW pilot plant by 2026 and eventually expanding to Gigawatt-scale projects, provided that public funding is approved.
The two businesses believe they have excellent opportunities for a successful partnership arrangement given the combination of RWE’s expertise in offshore wind farms and electrolysers and ArcelorMittal’s role as a guaranteed buyer of the green electricity and hydrogen. Long-term purchase agreements for wind energy and green hydrogen are planned to be finalized by RWE and ArcelorMittal.
The companies want to look into potential applications for ArcelorMittal’s low-emission steel in parts for RWE’s renewable electricity plants in addition to their partnership on green hydrogen and renewable electricity.
