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ArcelorMittal, a multinational based in Belo Horizonte, Minas Gerais (MG), entered into a partnership with RWE, a German company, to create offshore wind farms for energy development and the use of green hydrogen in order to reduce CO2 emissions in the environment. As a result, both companies will be able to produce the low-carbon steel in Germany. Depending on the results, if they are viable and sustainable in the long term, the multinational may expand its portfolio to Latin America.
The memorandum signed this week is historic for boosting the production of zero carbon steel with green hydrogen in Europe. The objective of the two institutions is to increase this offshore market by the year 2030, a period that many countries have to present coherent data on the Treaty of Paris and the reduction of emissions for climate control and global effect. ArcelorMittal, along with RWE, has stated that it needs large-scale renewable energy to decarbonise some metal production sites, particularly those located in Bremen, Hamburg, Eisenhüttenstadt and Duisburg.
Both companies are also considering the possibility of opening more tenders to work together offshore in the North Sea, to have space for large-scale production and, therefore, to close partnerships with other companies in the sector that wish to act in an environmentally correct way. According to both brands, the “Wind Energy at Sea Act” (WindSeeG) could shape the entire branch and course of the German offshore sector, public investments by the government are essential.
Competitive electricity prices, use of green hydrogen and partnership between ArcelorMittal and RWE
Second to ArcelorMittal e RWE, competitiveness in the use of energy is a way of guaranteeing that there will be no peak of inflation in the sector. This is because, by relying on monopolies, whenever there needs to be an increase due to scarcity, everyone must suffer without having the prospect of switching to another energy brand. It is precisely because of this quasi world monopoly that many developing countries, in times of crisis with the lack of water or raw materials, suffer from high inflation to more than two digits.
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Green hydrogen and electrolysis plants
The two institutions stated that they are looking for plants to carry out the hydrolysis and electrolysis process for the production of green hydrogen. At the moment, this energy category is not only being pioneered in the steel sector, but also in the aviation area. It was announced on Wednesday, June 22, that companies would be developing an aircraft engine that runs 100% on green hydrogen. According to Airbus, responsible for investments with Cantar, the first presentation of this development is expected to take place in 2023, in Australia. In addition, mining will generally also make use of this technology to automate processes.
Production of 70 MW
The first headquarters are located in Bremen and Eisenhüttenstadt and are expected to have a production of at least 70 MW by the year 2026. The intention to increase production in the long term is clear, however, it is still subject to public funding and low interest rates. If institutions need to resort to banks, they would have to pay high fees, which would make the investment unfeasible.
“Electricity from renewable energies and green hydrogen must become the hallmark of industrial production in Germany”, Sven Utermöhlen, CEO Offshore Wind, RWE Renewables.
