EWE AG and ArcelorMittal Bremen have signed a letter of intent for the supply of large quantities of green hydrogen. The Bremen-based steel manufacturer intends to use this to decarbonize its production from 2028.
ArcelorMittal Bremen wants to purchase large quantities of green hydrogen from EWE. The companies signed a letter of intent on this today. The EWE project "Clean Hydrogen Coastline" is to be the starting point for the large-scale production of hydrogen. As part of this project, EWE has been planning a 320 MW electrolysis plant in Emden, East Frisia, since fall 2022.
In April 2023, ArcelorMittal Bremen, EWE and EWE subsidiary swb also broke ground for a 10 MW hydrogen plant in Bremen. The electrolyzer complex is due to go into operation this year and will initially produce around 1,500 tons of hydrogen per year. The majority will be supplied to the ArcelorMittal steelworks in the immediate vicinity. Production volumes are to gradually increase into the three-digit MW range at a later date, saving around 11,000 tons of CO2 per year. In August 2023, EWE signed a similar letter of intent with the steel manufacturer Georgsmarienhütte.
EU funding approval required
In February 2021, EWE applied for funding as part of the European IPCEI program with the large-scale project "Clean Hydrogen Coastline". The project reached the second stage of the process in May 2021. The EU Commission is currently reviewing the funding application. ArcelorMittal has applied for national funding to convert its production route from blast furnaces to electric arc furnaces with direct reduction systems. The EU Commission has yet to approve this as well.
Stefan Dohler, CEO of EWE, described hydrogen as an "indispensable component for achieving the climate targets that have been set and for linking the three sectors of energy, mobility and industry". His Group is therefore involved in a large number of projects along the entire hydrogen value chain.
Frank Hohlweg, Chief Operating Officer and member of the Management Board of ArcelorMittal Bremen, also declared green hydrogen to be an "essential component" of future steel production. The company is working "at full speed" on a corresponding technology shift towards electric arc furnaces and DRI plants.
Clean Hydrogen Coastline: Major project on the north coast
The managers agree that the prerequisite for the projects is not only an adequate supply of hydrogen, but above all rapid funding approval from the EU Commission. This is the only way to create long-term investment security. Without competitive prices and volumes, firm assurances of subsidies, rapid provision of subsidies and fast approval procedures, the companies would probably not be able to implement their hydrogen projects, or not within the planned time frame.
In total, EWE plans to build up to 400 MW of electrolysis capacity near the German North Sea coast as part of the "Clean Hydrogen Coastline" project. This could produce up to 40,000 tons of green hydrogen per year. It should also be possible to expand these planned production capacities into the GW range.
