Energy giant bp has signed an agreement with thyssenkrupp Steel
(thyssenkrupp) to accelerate the steel industry’s transition to low emission
energy by focusing on the development long-term supply of low carbon hydrogen and
renewable power.
Announced today (11th July), the deal will contribute to the
decarbonisation of an industry responsible for 8-11% of global carbon dioxide
(CO2) emissions and 2.5% of Germany’s CO2 emissions.
By using direct reduction plants instead of coal-fired blast
furnaces to reduce iron ore with low-carbon blue and green hydrogen,
thyssenkrupp aims to make steel production climate-neutral by 2045.
The project is part of bp’s plan to invest in and work to
develop a portfolio of industrial-scale hydrogen projects in Germany, the
Netherlands, Spain, the UK, and Australia.
“The steel and energy industries have of course been closely
linked,” said William Lin, Executive Vice President Regions, Cities, and
Solutions, bp.
“We provide fuel and feedstock for steel production while our
platforms, pipelines, and turbine towers are made from steel.”
To further advance the development of low carbon hydrogen and
the growth of green steel in Europe, the companies intend to push for relevant
policies.
Commenting on the agreement, Dr. Arnd Köfler, Chief Technology
Officer, thyssenkrupp Steel, said, “The decarbonisation of the steel industry
will require enormous quantities of low-carbon and in the long term green
hydrogen.”
To do this, a hydrogen-based infrastructure must be built
including a pipeline network and clean electrolyser technology.
“The MoU is an important milestone for us to set the course with
bp for a reliable supply of energy in the future,” he added.
Currently producing
11m tonnes of crude steel per year, thyssenkrupp aims to produce 400,000 tonnes
of CO2-reduced steel by 2025.