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EDP and ArcelorMittal Formed a Pioneering Partnership Aiming to Construct a Pilot Plant Dedicated to Green Hydrogen Production. With the Memorandum of Understanding (MOU) Already Formalized, Studies Are Ongoing to Assess the Project’s Viability.
ArcelorMittal Tubarão and EDP, a company operating across all areas of the Brazilian electric sector, signed a Memorandum of Understanding (MOU) to assess the technical and economic viability of a pilot plant for the production and use of green hydrogen in the steel manufacturing process of steel.
EDP and ArcelorMittal Cooperation Study Began in August
The initiative is part of ArcelorMittal Tubarão’s efforts to boost low-carbon steel production and EDP’s goal to expand the production of green hydrogen using the company’s expertise, which pioneered the production of the first green hydrogen molecule in Latin America in December 2022.
In the first phase, Preliminary Feasibility, the technical, environmental, and economic aspects of the project will be evaluated. The scope and requirements for its execution will also be defined, establishing a solid foundation for decisions related to the next phases of the partnership.
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The cooperation study began in August, when working groups from various areas, such as engineering, project development, utilities, environmental, and finance, started activities, working collaboratively and integratively to identify possible mutually beneficial business models.
The feasibility of installing a pilot plant for green hydrogen production will be assessed based on the results obtained in the various stages of the study, particularly in the Project Definition Stage. At this stage, the estimated investments and the complete feasibility results of the EDP and ArcelorMittal project will be analyzed in detail to enable decision-making regarding the implementation of the pilot plant. The study is expected to be completed within a year.
ArcelorMittal and EDP comment on the Pilot Plant
According to Jorge Oliveira, CEO of ArcelorMittal Flat Steel South America, this green hydrogen initiative aligns with the Group’s global goal of becoming carbon neutral by 2050, participating in the transition process to a low-carbon economy. According to him, the partnership with EDP represents another significant step in this journey.
With this collaboration, the possibility of incorporating and applying green hydrogen as part of its production process will be explored, contributing alongside alternative strategies to become a carbon-neutral company in the future. Oliveira adds that this is a pilot project for green hydrogen and that the feasibility of expansion to other ArcelorMittal units in Brazil will be evaluated for the future.
The partnership is also part of EDP’s initiatives to lead the energy transition, with investments in renewable energy sources. According to João Marques de Cruz, CEO of EDP Brazil, for Brazil to stand out as a reference in green hydrogen production, strong demand is essential.
The partnership with ArcelorMittal is an example of how EDP is working to drive this market while leveraging its expertise and pioneering spirit in this area. The expectation is that this will be the first project for expanding green hydrogen production and strategic partnerships of EDP with various segments of the industry that can be decarbonizing.
Get to Know the Companies
Present in the country for over 25 years, EDP Brazil is one of the largest private companies in the electric sector operating across the entire value chain, with over 12,000 direct and outsourced employees.
On the other hand, ArcelorMittal Tubarão is the largest integrated mill in Latin America, with the capacity to produce 7.5 million tons of high-quality flat steel annually for various sectors, including automotive, appliances, shipbuilding, pipes, construction, and agricultural implements.
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