Wind Energy – MoU
RWE and steel producer ArcelorMittal have signed a memorandum of understanding to work together to develop, build and operate offshore wind farms and hydrogen facilities.
The wind farms and facilities will supply the renewable energy and green hydrogen required to produce low-emissions steel in Germany.
The partnership centres on driving forward the production of carbon-neutral steel, with a plan to replace coal with wind power and green hydrogen as the main source of energy in steel production at ArcelorMittal’s steelmaking sites in Germany.
To decarbonise its production sites in Bremen, Hamburg, Eisenhüttenstadt and Duisburg as planned, ArcelorMittal Germany needs renewable energy on a large scale.
RWE and ArcelorMittal also want to work together on the development of green hydrogen, by jointly looking for areas where electrolysis plants can be built to supply the steel production sites in Bremen and Eisenhüttenstadt, starting with a 70 MW pilot plant by 2026 with the clear intention to increase to Gigawatt-scale projects in the long term – subject to approval of public funding.
With the combination of RWE’s expertise in offshore wind farms and electrolysers, and ArcelorMittal as a guaranteed buyer of the green electricity and hydrogen, the two companies believe they have excellent opportunities for a viable partnership arrangement. RWE and ArcelorMittal intend to conclude long-term purchase agreements for both wind power and green hydrogen.
In addition to the partnership on renewable electricity and green hydrogen, the companies want to investigate possible uses for ArcelorMittal’s low-emissions steel in components for RWE’s renewable electricity plants. RWE wants to be climate-neutral by 2040. To achieve this goal, the energy company needs to decarbonise its supply chain, and the use of low-emissions steel will make an important contribution to this.