bp and thyssenkrupp Steel announced they have signed a MoU focused on the development of long-term supply of low carbon H₂ and renewable power in steel production, helping accelerate the steel industry’s wider energy transition.

thyssenkrupp Steel accounts for 2.5% of CO₂ emissions in Germany, mainly at the Duisburg site where the main emitters, the blast furnaces, are operated. By replacing the coal-fired blast furnaces with direct reduction plants where iron ore is reduced with low-carbon H₂, thyssenkrupp Steel intends to make steel production climate-neutral in the long term. 

The companies will explore supply options for both blue and green H₂, as well as power from wind and solar generation using power purchase agreements.

“As part of our strategy to provide a range of decarbonization solutions to corporates, bp is already investing in and working to develop a portfolio of industrial-scale H₂ projects in Germany, the Netherlands, Spain, the UK and Australia. With our aligned ambitions and complementary investments, thyssenkrupp Steel and bp can together help this hard-to-abate sector decarbonize faster,” said William Lin, bp executive vice president regions, cities and solutions.

William Lin, bp’s executive vice president regions, cities and solutions said: “The steel and energy industries have of course long been closely linked.  We provide fuel and feedstock for steel production while our platforms, pipelines, and turbine towers are made from steel.  

“thyssenkrupp Steel has the ambition to make its steel production climate-neutral by 2045 and low carbon power and H₂ will play a critical role in achieving that.  As part of our strategy to provide a range of decarbonization solutions to corporates, bp is already investing in and working to develop a portfolio of industrial-scale H₂ projects in Germany, the Netherlands, Spain, the UK and Australia. With our aligned ambitions and complementary investments, thyssenkrupp Steel and bp can together help this hard-to-abate sector decarbonize faster.”

Dr. Arnd Köfler, Chief Technology Officer at thyssenkrupp Steel said, "The decarbonization of the steel industry will require enormous quantities of low-carbon and in the long term green H2. This will increasingly require the use of electricity from renewable sources. All this can only be achieved through a well-developed H₂ infrastructure with a supra-regional pipeline network. The MoU is an important milestone for us to set the course with bp for a reliable supply of energy in the future."

Steel accounts for 8%–11% of global CO₂ emissions. It is essential for the automotive and construction industries and for the manufacturing of industrial machinery. It also forms the foundation for a string of decarbonization technologies, including wind turbines, generators and smart power grids.

The companies also intend to jointly advocate for policies that will support the development of low carbon H2 and the growth of green steel in Europe. 

thyssenkrupp Steel produces 11 MMtpy of crude steel and is targeting the production of 400,000 tons of CO₂-reduced steel by 2025.

bp is working to pursue green H2 ‎production at its refineries in Lingen in Germany, Rotterdam in the Netherlands, and Castellón in Spain. ‎ It is developing both blue and green H₂ production projects around the world, including in the UK and Australia.