RWE and ArcelorMittal intend to construct and function offshore wind farms and hydrogen services for low-emissions steelmaking


Power firm RWE and metal producer ArcelorMittal have signed a memorandum of understanding to work collectively to develop, construct and function offshore wind farms and hydrogen services that can provide the renewable power and inexperienced hydrogen required to provide low-emissions metal in Germany. The partnership facilities on driving ahead the manufacturing of carbon-neutral metal, with a plan to interchange coal with wind energy and inexperienced hydrogen as the primary supply of power in metal manufacturing at ArcelorMittal’s steelmaking websites in Germany.


To decarbonize its manufacturing websites in Bremen, Hamburg, Eisenhüttenstadt and Duisburg as deliberate, ArcelorMittal Germany wants renewable power on a big scale.

RWE and ArcelorMittal are assessing choices for joint participation in tenders for offshore wind farm websites within the North Sea. The modification of the Wind Power at Sea Act (WindSeeG) presently below method is essential for achievement, as it should completely form the associated fee construction within the German offshore wind sector. If the legislation have been to determine damaging bids in offshore wind tenders, financing wind farms can be tougher and ship the unsuitable pricing indicators to the market by making wind energy unnecessarily costly, the businesses mentioned.

Aggressive electrical energy costs are completely crucial, if energy-intensive industries such because the metal trade, which operates in a aggressive world atmosphere, are to have a future in Germany, the businesses added. RWE and ArcelorMittal strongly imagine that with the appropriate steer, inexperienced metal from Germany can turn out to be a benchmark worldwide for low-carbon emissions metal manufacturing.

RWE and ArcelorMittal additionally wish to work collectively on the event of inexperienced hydrogen, by collectively in search of areas the place electrolysis vegetation might be constructed to provide the metal manufacturing websites in Bremen and Eisenhüttenstadt, beginning with a 70 MW pilot plant by 2026 with the clear intention to extend to Gigawatt-scale tasks in the long run, topic to approval of public funding.

With the mixture of RWE’s experience in offshore wind farms and electrolyzers, and ArcelorMittal as a assured purchaser of the inexperienced electrical energy and hydrogen, the 2 corporations imagine they’ve wonderful alternatives for a viable partnership association. RWE and ArcelorMittal intend to conclude long-term buy agreements for each wind energy and inexperienced hydrogen.

Electrical energy from renewable energies and inexperienced hydrogen should turn out to be the hallmark of business manufacturing in Germany. Trade wants each in massive portions as quickly as attainable with a purpose to obtain its local weather targets. That’s the reason we’re planning one of the crucial formidable growth tasks for offshore wind farms and electrolysers in Germany, along with ArcelorMittal. If the regulatory framework is correct, we wish to achieve success collectively within the bidding for offshore areas. ArcelorMittal is a wonderful accomplice to increase our trade cooperation and thus give actual impetus to decarbonization tasks in Germany.

—Sven Utermöhlen, CEO Offshore Wind, RWE Renewables

ArcelorMittal Germany is embarking on a radical transition to make sure we attain our CO2 emissions discount targets, that means that the power used to make metal will must be clear power. The partnership we have now introduced with RWE right this moment is critical for quite a few causes: it should present us with the renewable, inexpensive electrical energy and inexperienced hydrogen that we have to produce low-emissions metal whereas remaining aggressive in a worldwide market. It additionally presents very important safety within the provide chain, by integrating the availability of power and hydrogen into our enterprise. We’re wanting ahead to working with RWE on this extremely necessary mission and benefiting from their expertise and know-how, as we proceed to guide the trade within the decarbonization of steelmaking in Germany and past.

—Reiner Blaschek, CEO ArcelorMittal Germany

Because the world’s main metal producer, ArcelorMittal has formidable local weather motion objectives, together with a goal to cut back CO2 emissions by 35% by 2030 in Europe, and a group-wide goal to be carbon impartial by 2050. By 2030, ArcelorMittal is aiming to exceed this goal in Germany, by transferring away from coal-intensive blast furnace know-how to electrical arc furnaces (EAFs) and direct discount (DRI) vegetation. Additionally they plan to regularly substitute pure fuel with inexperienced hydrogen because the gas for these services, as soon as it’s cost-competitive at scale.

Along with the partnership on renewable electrical energy and inexperienced hydrogen, the businesses wish to examine attainable makes use of for ArcelorMittal’s low-emissions metal in parts for RWE’s renewable electrical energy vegetation. RWE desires to be climate-neutral by 2040. To attain this purpose, the power firm must decarbonize its provide chain, and the usage of low-emissions metal will make an necessary contribution to this.


Leave a Comment