Steel manufacturer ArcelorMittal Bremen and the energy service provider EWE want to jointly implement further hydrogen (H₂) projects and thus advance the transformation of the Bremen region on the way to climate neutrality.

In April 2023, ArcelorMittal Bremen, EWE and the EWE subsidiary swb laid the foundation for the construction of a 10-megawatt (MW) H₂ production plant in Bremen. The electrolysis plant will form the basis for green steel production in north-west Germany. It is due to go into operation this year. ArcelorMittal Bremen and EWE have now signed a letter of intent to supply green H₂ in large quantities. The aim is to significantly reduce CO₂ emissions in steel production. The project represents a further milestone on the way to a fully decarbonized steel industry in Bremen. Green H₂ from a 320-MW production plant in Emden is expected to be supplied to Bremen from 2028.

Stefan Dohler, EWE CEO, comments, "The energy transition will only succeed with the use of H₂. I am convinced of this. Producing H₂ from renewable energies will create the conditions for making industrial processes such as steel production climate neutral. H₂ is therefore an indispensable component for achieving the climate targets that have been set and for linking the three sectors of energy, mobility and industry. Together with partners, EWE is therefore planning projects along the entire H₂ value chain and gradually implementing them—from production from renewables, storage and transport to application, especially in industry and heavy goods transport.”

Frank Hohlweg, Chief Operating Officer and member of the Executive Board of ArcelorMittal Bremen, says, "Green H₂ is an essential component for our future steel production in order to decarbonize our production. We are working hard to make the complete technology switch possible. To this end, our blast furnaces are to be replaced by new electric arc furnaces and a direct reduction plant in the future. In the future, we want to use H₂ instead of coal as a chemical reducing agent and thus further reduce CO₂ emissions towards net-zero. Until green H₂ is available in sufficient quantities and at competitive prices, we are planning to use natural gas in the transition phase, which will already reduce emissions by more than 60%. With the use of green H₂, we will then take the decisive step towards CO₂-free production."

Connecting large-scale project "Clean Hydrogen Coastline" as the basis. According to Stefan Dohler, the starting point for the large-scale production of green H₂ for ArcelorMittal Bremen is the connecting large-scale project "Clean Hydrogen Coastline." This brings together production, storage, transport and utilization in industry, thereby implementing the political requirements. EWE applied for funding for this large-scale project in February 2021 as part of the European IPCEI program (Important Projects of Common European Interest) and reached the second stage of the process in May 2021. Funding is currently still being reviewed at the European level. ArcelorMittal has applied for national subsidies for the conversion of production technology from blast furnaces to electric arc furnaces with a direct reduction plant, which also still have to be approved by the EU Commission.

EU funding approval and swift federal funding necessary. Both managers agree that the projects require early funding approval at the European level. The aim of the cooperation is to realize a ramp-up of the H₂ infrastructure in Germany and the EU through early and courageous commitment. Long-term investment security for the realization of major projects such as "Clean Hydrogen Coastline" and the conversion of production technologies is essential for this. The swift approval of funding by the EU Commission is a necessary legal prerequisite. Without a firm guarantee of funding, rapid provision of funding and fast approval procedures, companies will probably not be able to realize their projects, or not within the planned timeframe.

Background information. EWE plans to build up to 400 MW of electrolysis capacity at locations near the German North Sea coast that are beneficial to the system, from which up to 40,000 metric tpy of green H₂ can be produced, depending on the sales market. There is also the possibility of expanding production capacity to gigawatt scale in line with demand. The green H₂ will also be used at ArcelorMittal Bremen. The H₂ from the EWE plants is to be transported via H₂ pipelines, which are being built as part of the large-scale "Clean Hydrogen Coastline" project, as well as the planned "HyPerLink" project of the long-distance gas network operator Gasunie. These pipeline connections are part of the planned H₂ core network. The positioning of EWE's production facilities at important offshore connection points also makes it possible to integrate the import of green H₂.

Further joint H₂ activities are being implemented. In addition to the planned use of green H₂ from EWE production plants in the north-west, the partners EWE and ArcelorMittal Bremen are already involved in other H₂ projects. In April 2023, ArcelorMittal Bremen, EWE and the EWE subsidiary swb laid the foundation for the construction of a 10-MW H₂ production plant. The electrolysis plant will form the basis for green steel production in north-west Germany. It is scheduled to go into operation in 2024 and will initially produce around 1,500 metric tpy of H₂. In the future, production volumes will be gradually increased into the three-digit MW range. This will save around 11,000 metric tpy of CO₂. The lion's share of the green H₂ will be supplied to the ArcelorMittal steelworks in the immediate vicinity of the electrolyzer. The use of green H₂ will reduce CO₂ emissions at the steelworks.

ArcelorMittal has set itself the goal of producing climate-neutral steel by 2050. In Europe, CO₂ emissions are to be reduced by 35% by 2030. In order to achieve these targets, ArcelorMittal Bremen plans to replace the two blast furnaces with a direct reduction plant and two electric arc furnaces in two stages. After commissioning, the direct reduction plant is initially to be operated with natural gas and gradually converted to H₂ operation. This will depend on the availability of generation capacity, infrastructure and economic and political conditions.