Germany-based steelmaker Thyssenkrupp Steel has announced that it has signed a memorandum of understanding with UK-based oil and gas company BP for the development of long-term supply of low carbon hydrogen and renewable power in steel production, helping accelerate the EU steel industry’s wider energy transition.
The companies will explore supply options for both blue and green hydrogen, as well as power from wind and solar generation through the use of power purchase agreements.
Thyssenkrupp accounts for 2.5 percent of carbon emissions in Germany. The company intends to make steel production climate-neutral in the long term by replacing its coal-fired blast furnaces with direct reduction plants where iron ore is reduced with low-carbon hydrogen, the company intends to make steel production climate-neutral in the long term.
Currently, Thyssenkrupp annually produces 11 million mt of crude steel and is targeting production of 400,000 mt of carbon-reduced steel by 2025.
