Steel production is a filthy industry. Every ton produced emits around 2 tons of CO2. Because the steel sector produces over 2 billion tons of steel each year, that is a lot of CO2 released into the environment – nearly 7% of total global emissions.
The issue is that the traditional method of producing steel — heating iron in a blast furnace — has been in use for millennia.
ArcelorMittal is one of the world’s major steel producers. It is seeking to reduce carbon emissions from steel production by substituting green hydrogen for coke. This removes the significant emissions associated with coke production but still needs massive quantities of electricity for the remainder of the process.
This week, RWE, one of Germany’s top power producers, and ArcelorMittal inked a memorandum of understanding. They will collaborate to design, build, and manage offshore wind farms and hydrogen facilities that will supply the renewable energy and green hydrogen needed to create low-emission steel in Germany, according to the deal.
The objective is to replace coal as the primary source of energy in steel production at ArcelorMittal’s steelmaking plants in Germany with wind power and green hydrogen.
The collaboration will supply renewable, inexpensive power and green hydrogen to manufacture low-emission steel while remaining competitive in a global market. It also provides critical supply chain security by integrating the supply of energy and hydrogen into the company. The new offshore wind farms will be located in the North Sea.
This is a Globe Businesswire Feed; researched and edited by Clean-Future Team