Thyssenkrupp and BP unite on decarbonized steel in boost to Europe’s green energy transition

20 Jul 2022 --- Steel manufacturer Thyssenkrupp has signed a memorandum of understanding (MoU) with BP to decarbonize its production processes in Germany and aid the country’s energy transition. The collaboration says it will focus on establishing “green” and “blue” hydrogen sources and rely on renewable energy. 

Thyssenkrupp Steel currently accounts for 2.5% of CO2 emissions in Germany, mainly emitted by the Duisburg site where its blast furnaces are operated. 

By replacing the coal-fired blast furnaces with direct reduction plants where iron ore is reduced with low-carbon hydrogen, Thyssenkrupp Steel says it can make steel production “climate-neutral” in the long term. The company aims for net-carbon emissions by 2045. 

“The decarbonization of the steel industry will require enormous quantities of low-carbon [energy] and, in the long term, green hydrogen,” says Dr. Arnd Köfler, chief technology officer at Thyssenkrupp Steel. 

“This [transition] will increasingly require the use of electricity from renewable sources. All this can only be achieved through a well-developed hydrogen infrastructure with a supra-regional pipeline network. The MoU is an important milestone for us to set the course with bp for a reliable supply of energy in the future.”

Steel production is one of the most energy intensive practices in the world.Green and blue hydrogen
The companies will begin to explore supply options for both blue and green hydrogen and power from wind and solar generation through power purchase agreements. 

The term “blue hydrogen” is used when the CO2 released in the process of hydrogen production is largely (80-90%) captured and stored. “Green hydrogen” is hydrogen that is produced with sustainable energy – usually through electrolysis. 

By partnering with BP, Thyssenkrupp can gain access to better sources of low-impact energy.

William Lin, BP’s executive vice president of regions, cities and solutions, remarks: “The steel and energy industries have, of course, long been closely linked. We provide fuel and feedstock for steel production while our platforms, pipelines, and turbine towers are made from steel.”

“Thyssenkrupp Steel has the ambition to make its steel production climate-neutral by 2045, and low carbon power and hydrogen will play a critical role in achieving that.” 

“As part of our strategy to provide a range of decarbonization solutions to corporates, BP is already investing in and working to develop a portfolio of industrial-scale hydrogen projects in Germany, the Netherlands, Spain, the UK and Australia. With our aligned ambitions and complementary investments, Thyssenkrupp Steel and BP can together help this hard-to-abate sector decarbonize faster.” 

Steel impactBP will help Thyssenkupp find more renewable evergy sources for hydrogen.
Steel accounts for 8-11% of global CO2 emissions, according to the World Steel Association. Thyssenkrupp Steel currently produces 11 million metric tons of crude steel annually and is targeting the production of 400,000 metric tons of CO2-reduced steel by 2025. 

BP is working to pursue green hydrogen ‎production at its refineries in Lingen in Germany, Rotterdam in the Netherlands and Castellón in Spain. It is developing both blue and green hydrogen production projects worldwide, including in the UK and Australia.

The companies also say they intend to jointly advocate for policies that will support the development of low carbon hydrogen and the growth of green steel in Europe. Last year saw a rise in criticism against European governments after China, which has a global monopoly on the steel trade, disrupted production to aid its interior energy crisis. 

Steel associations in Europe said illegal dumping by the Chinese, uninterrupted by EU officials, could lead to “catastrophe.”

Projects aimed at boosting environmentally friendly production practices will increase Europe’s already strong performance compared to the rest of the world.

Bluemint steel 
This year, Thyssenkrupp Rasselstein launched the “world’s first” food can made of carbon-reduced bluemint steel in collaboration with Swiss packaging company Hoffmann Neopac and cough drop producer Ricola.

The three companies say environmental sustainability and conservation of resources are part of a collective corporate strategy and have joined forces to develop the first food can made of CO2-reduced packaging steel. 

Food cans made of steel “already stand out,” they say, with recyclability of almost 100% and close recycling cycles. Now, a novel manufacturing process saves “a considerable amount” of carbon emissions.

By Louis Gore-Langton