German energy supplier EWE AG and utility SWB AG are making progress on a project for a 10-MW electrolysis plant in Bremen that will produce green hydrogen for the decarbonisation of the steel industry and the mobility sector in the region.
The two partners have selected Rostock-based Apex Group to set up an electrolysis plant at SWB's power station Bremen Mittelsbueren. The electrolyser is expected to come into operation in 2024, SWB said on Wednesday.
Additionally, a contract has been signed with ArcelorMittal SA (NYSE:MT) which will offtake the hydrogen from the plant to use it for raw iron production and processing at its site in Bremen in a bid to save tonnes of carbon dioxide emissions.
ArcelorMittal will use the first hydrogen in its existing plants and will introduce new production technologies so that it can produce climate-neutral steel in Bremen by the mid-2030s, said ArcelorMittal Bremen's chief executive Reiner Blaschek.
The project, known as Hydrogen for Bremen's industrial transformation (HyBit), is worth more than EUR 20 million (USD 20.35m) and half of the required investments come from the state of Bremen.
The initiative is being implemented by Bremer Wasserstoff GmbH, a 50:50 joint venture of SWB and EWE.
The project is of particular importance as it comes at a time when efforts to achieve greater energy independence are in full swing, said Bremer Wasserstoff's co-head Thomas Kalkau.
(EUR 1 = USD 1.018)
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