Northern German steel manufacturer ArcelorMittal Bremen and energy supplier EWE are looking to jointly implement additional hydrogen projects, allowing them to forge ahead with their region’s transformation towards net zero. In April 2023, ArcelorMittal Bremen, EWE and EWE subsidiary SWB laid the foundations for the construction of a 10-megawatt hydrogen production plant in Bremen.
The electrolysis plant will provide a springboard for green steel production in northwestern Germany and is due to go into operation this year. ArcelorMittal Bremen and EWE have now signed a letter of intent for the supply of green hydrogen in large quantities. The aim of this declaration is to minimise CO2 emissions in steel production. The project represents a further milestone on the path to a fully decarbonised steel industry in Bremen. The plan is to supply Bremen with green hydrogen from a 320-megawatt production plant in Emden starting in 2028.
Stefan Dohler, EWE CEO, comments: “The transition to green energy will only succeed with the use of hydrogen. I am convinced of that. Obtaining renewable hydrogen energy will create the conditions for turning industrial processes such as steel production into net-zero activities. As a result, hydrogen is a key component in achieving the climate targets that have been set and for linking the energy, transport and industrial sectors.”
With this in mind, EWE is planning projects along the entire hydrogen value chain together with partners and successively implementing these plans – from renewable energy production through storage and transportation to final applications, in particular in industry and heavy-duty vehicles.
Frank Hohlweg, COO and member of the executive board of ArcelorMittal Bremen, says: “Green hydrogen will be a key part of our future steel output as we look to decarbonise our production. We are working hard to make the complete technology switch possible. To this end, we will replace our blast furnaces with new electric arc furnaces and a direct reduction system in future. In future, we want to use hydrogen instead of coal as a chemical reducing agent, further reducing CO₂ emissions towards net zero. In the transition phase until green hydrogen is available in sufficient quantities and at competitive prices, we are planning to use natural gas, which will already reduce emissions by more than 60%. With the use of green hydrogen, we will then take a decisive step towards zero-carbon production.”
Key connecting piece: the large-scale Clean Hydrogen Coastline project
According to Dohler, the large-scale Clean Hydrogen Coastline project is the starting point for the industrial production of green hydrogen for ArcelorMittal Bremen. This project is intended to act as a connecting piece, bringing together production, storage, transportation and application – and in turn delivering on the political requirements. With this large-scale project, EWE applied for funding under the EU’s Important Project of Common European Interest (IPCEI) programme in February 2021, reaching the second stage of the process that May. The funding is still under review at the European level.
ArcelorMittal has applied for national subsidies to help convert its production technology from blast furnaces to electric arc furnaces with direct reduction systems, although this is also still pending sign-off from the European Commission.
Funding needed
Both managers agree that the projects require early funding approval at the European level. The collaborative effort’s purpose is to take early and bold action to ramp up hydrogen infrastructure in Germany and the EU. If this goal is to be achieved, there must be long-term security of investment for the implementation of major initiatives such as the Clean Hydrogen Coastline project and changes in production technology.
Having hydrogen in sufficient quantities and at competitive prices is just as vital for implementation as the legal necessity of swift funding approval from the European Commission. Without competitive prices and supply volumes, a firm guarantee of funding, rapid provision of these funds and fast approval procedures, the companies in question will probably not be able to realise their projects – or at least not within the planned time frame.
