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Released April 13, 2021 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--ArcelorMittal (NYSE:MT) is accelerating its drive to reduce emissions from steel production by announcing plans to produce so-called 'green steel' from two of its German plants.
The company has revealed plans to build a large-scale industrial plant for the direct reduction of iron ore (DRI) and electric arc furnace (EAF)-based steelmaking at its site in Bremen, as well as a DRI pilot plant in addition to an EAF in Eisenhüttenstadt. The company said the investment is in support of Germany's planned expansion of the country's hydrogen infrastructure. In January, the government enacted its Renewable Energies Sources Act (EEG 2021) which contained specific support for the production and industrial usage of green hydrogen. It estimates that hydrogen demand will be 90 to 110 terawatt-hours (TWh) by 2030. To meet this, electrolysers with a total capacity of up to 5 gigawatts (GW) are to be built by 2030--capable of supplying 14 TWh--along with the necessary offshore and onshore renewable energy to support them. Another 5 GW will be added by 2040.
ArcelorMittal stated that using green hydrogen will allow up to 3.5 million tonnes of steel to be produced by the Bremen and Eisenhuttenstadt sites by 2030, with significantly lower CO2 emissions. Depending on the amount of hydrogen available, CO2 savings of more than 5 million tonnes could be possible. The technology conversion will require a combined investment up to 1.5 billion euro ($1.77 billion).
"With our concept for the transformation of the plants in Bremen and Eisenhüttenstadt, we are accelerating the implementation of carbon-neutral steel production," commented said Reiner Blaschek, chief executive officer of ArcelorMittal Flachstahl Deutschland. "These projects have the potential to have a significant impact in reducing CO2 emissions, in line with the European Union's climate commitments. We are now asking for the necessary support and access to funding, to make the implementation of our plans happen "
In Germany, ArcelorMittal already operates Europe's only DRI-EAF plant in Hamburg, where the switch to using hydrogen instead of natural gas in the iron ore reduction process is being prepared. The goal is industrial commercial maturity of the technology by 2025, initially producing upwards of 100,000 tonnes of sponge iron a year. It delivered its first 30,000 tonnes of green steel from Hamburg last year, with plans to scale it up to 120,000 tonnes in 2021 and 600,000 tonnes by 2022. For additional information, see October 21, 2020, article--ArcelorMittal Europe Promises First 'Green Steel' in 2020.
The changes at Bremen and Eisenhüttenstadt will start this year with a blast furnace at each site being converted to inject natural gas, reducing the use of coal in the iron ore reduction process. Following this DRI-EAF plants will be set up at both locations. In Bremen, ArcelorMittal initially plans to use natural gas for the DRI, and later hydrogen from electrolysis; the hydrogen is to be made available as part of the regional North German Clean Hydrogen Coastline network. The sponge iron produced in the Bremen DRI unit will initially supply the steelworks in Bremen and Eisenhüttenstadt, until the regional hydrogen cluster in East Brandenburg can also supply the Eisenhüttenstadt site with sufficient hydrogen. During the transition phase, the additional hydrogen required in Eisenhuttenstadt will be generated from natural gas with the help of a pyrolysis plant that will be built on the steel plant's premises. To secure the future supply of hydrogen, both sites are to be integrated into the European hydrogen network in the long term via the regional hydrogen networks. ArcelorMittal aims to reduce CO2 emissions by 30% by 2030 in Europe and be producing carbon-neutral steel by 2050.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com. Projects(s) 300658419 300672220 300517484 Plant(s) 3003535 3003528 3086497
The company has revealed plans to build a large-scale industrial plant for the direct reduction of iron ore (DRI) and electric arc furnace (EAF)-based steelmaking at its site in Bremen, as well as a DRI pilot plant in addition to an EAF in Eisenhüttenstadt. The company said the investment is in support of Germany's planned expansion of the country's hydrogen infrastructure. In January, the government enacted its Renewable Energies Sources Act (EEG 2021) which contained specific support for the production and industrial usage of green hydrogen. It estimates that hydrogen demand will be 90 to 110 terawatt-hours (TWh) by 2030. To meet this, electrolysers with a total capacity of up to 5 gigawatts (GW) are to be built by 2030--capable of supplying 14 TWh--along with the necessary offshore and onshore renewable energy to support them. Another 5 GW will be added by 2040.
ArcelorMittal stated that using green hydrogen will allow up to 3.5 million tonnes of steel to be produced by the Bremen and Eisenhuttenstadt sites by 2030, with significantly lower CO2 emissions. Depending on the amount of hydrogen available, CO2 savings of more than 5 million tonnes could be possible. The technology conversion will require a combined investment up to 1.5 billion euro ($1.77 billion).
"With our concept for the transformation of the plants in Bremen and Eisenhüttenstadt, we are accelerating the implementation of carbon-neutral steel production," commented said Reiner Blaschek, chief executive officer of ArcelorMittal Flachstahl Deutschland. "These projects have the potential to have a significant impact in reducing CO2 emissions, in line with the European Union's climate commitments. We are now asking for the necessary support and access to funding, to make the implementation of our plans happen "
In Germany, ArcelorMittal already operates Europe's only DRI-EAF plant in Hamburg, where the switch to using hydrogen instead of natural gas in the iron ore reduction process is being prepared. The goal is industrial commercial maturity of the technology by 2025, initially producing upwards of 100,000 tonnes of sponge iron a year. It delivered its first 30,000 tonnes of green steel from Hamburg last year, with plans to scale it up to 120,000 tonnes in 2021 and 600,000 tonnes by 2022. For additional information, see October 21, 2020, article--ArcelorMittal Europe Promises First 'Green Steel' in 2020.
The changes at Bremen and Eisenhüttenstadt will start this year with a blast furnace at each site being converted to inject natural gas, reducing the use of coal in the iron ore reduction process. Following this DRI-EAF plants will be set up at both locations. In Bremen, ArcelorMittal initially plans to use natural gas for the DRI, and later hydrogen from electrolysis; the hydrogen is to be made available as part of the regional North German Clean Hydrogen Coastline network. The sponge iron produced in the Bremen DRI unit will initially supply the steelworks in Bremen and Eisenhüttenstadt, until the regional hydrogen cluster in East Brandenburg can also supply the Eisenhüttenstadt site with sufficient hydrogen. During the transition phase, the additional hydrogen required in Eisenhuttenstadt will be generated from natural gas with the help of a pyrolysis plant that will be built on the steel plant's premises. To secure the future supply of hydrogen, both sites are to be integrated into the European hydrogen network in the long term via the regional hydrogen networks. ArcelorMittal aims to reduce CO2 emissions by 30% by 2030 in Europe and be producing carbon-neutral steel by 2050.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com. Projects(s) 300658419 300672220 300517484 Plant(s) 3003535 3003528 3086497
