Hydrogen Central

On the Road to Decarbonisation with Hydrogen: ArcelorMittal, VEO and McPhy to Build Pilot Electrolysis Plant in Eisenhüttenstadt

electrolysis plant mcphy

On the road to decarbonisation with hydrogen: ArcelorMittal, VEO and McPhy to build pilot electrolysis plant in Eisenhüttenstadt.

The global steel and mining group ArcelorMittal is moving forward on the path to climate-neutral steel production at its Eisenhüttenstadt site.

Together with energy supplier Vulkan Energiewirtschaft Oderbrücke (VEO) – a joint venture between the city of Eisenhüttenstadt and ArcelorMittal – and McPhy Energy, specialized in low-carbon hydrogen production and distribution equipment (electrolyzers and refueling stations), ArcelorMittal Eisenhüttenstadt will build a pilot electrolysis plant and a hydrogen filling station on the plant site.

The innovative demonstration project includes the supply of two McLyzer electrolysers with an output of 1 MW each. In addition, a long-term 5-year service contract was agreed upon. The state of Brandenburg is funding the project with 5.1 million euros as part of the regional innovation cluster.

The electrolysers will produce hydrogen for direct use in steel production. The hydrogen will first be used in the cold rolling mill. The hydrogen filling station is used to refuel forklifts or trucks with some of the hydrogen produced. The oxygen also generated during electrolysis is to be reused on site in production, for example in the hot rolling mill.

Smart operating modes to increase energy efficiency

Another goal is to optimize the overall energy efficiency of the production site by testing newly developed smart operating modes in real-world applications. They should make it possible to determine the best combination of software and hardware to improve system performance – comparable to software improvement in aircraft by implementing an intelligent strategy to control aircraft functions.

The Brandenburgish Technical University (BTU) Cottbus-Senftenberg is providing scientific support for the project and analyzing data from hydrogen use at the demonstration plant to improve efficiency and support further development of electrolysers.

Reiner Blaschek, CEO ArcelorMittal Germany said: 

The demonstration plant will serve H2 use in steel production as well as the logistical use of hydrogen-powered vehicles around steel production.

“With this project, we want to examine and show how further emission reductions are possible now, before a complete change in technology and the use of further hydrogen in the coming years will fully convert production to climate neutrality.”  

Prof. Dr. Jörg Steinbach, Minister of Economics of the State of Brandenburg: 

The use of hydrogen in steel production contributes significantly to the urgently needed hydrogen infrastructure as a necessary building block for maintaining the steel industry in Brandenburg and for the energy transition.

“The project couples the energy, industry and mobility sectors and helps to reduce CO2 emissions in steel production and in the state of Brandenburg in the long term.”

Jean-Baptiste Lucas, Chief Executive Officer of McPhy:

We are proud to participate in this large-scale and innovative project alongside ArcelorMittal and the State of Brandenburg.

“This is our first major contract in the industrial sector, one of the most strategic and promising applications for green hydrogen. The work will be carried out in Germany, close to our site in Wildau. This is a milestone in our European expansion strategy and a proof of the importance of our pan-European industrial set-up.”

Prof. Dr. Lars Röntzsch, BTU Cottbus, said: 

Increasing energy efficiency through the use of intelligent operating modes in electrolysis is a challenging topic that we are very happy to work on scientifically in order to make our contribution to ensuring that this important future technology enables climate-neutral operation in such an energy-intensive industry as the steel industry.

“Hydrogen will be of great importance as a green energy carrier for industry and mobility in Brandenburg.”

ABOUT ARCELORMITTAL

Germany

With a production volume of around 8 million tonnes of crude steel, ArcelorMittal is one of the largest steel manufacturers in Germany. The automotive, construction and packaging industries are among its customers, as is the household goods sector. The company operates four large production sites in Germany.

These include two integrated flat steel mills in Bremen and Eisenhüttenstadt and two long steel mills in Hamburg and Duisburg. In addition, the Group operates ArcelorMittal Construction in Sandersdorf/Brehna, a production site with sales for sandwich panels as well as profiling facilities for cassette, trapezoidal, support, design and corrugated profiles.

In addition, the Group has a strong distribution network in Germany with four steel service centres and ten steel trading locations. ArcelorMittal operates a pipe mill in Altensteig. The group employs about 8,500 people in Germany.

Highlights:

  • Newly developed electrolysis demonstration plant with 2 MW capacity to go into operation in 2024
  • Hydrogen to be used directly in steel production and for logistics processes on the site
  • The Brandenburgish Technical University Cottbus-Senftenberg is providing scientific support for the project to further develop the technology 
  • The state of Brandenburg is funding the project cost with approximately five million euros

READ the latest news shaping the hydrogen market at Hydrogen Central

McPhy Energy: On the Road to Decarbonisation with Hydrogen: ArcelorMittal, VEO and McPhy to Build Pilot Electrolysis Plant in Eisenhüttenstadt, Eisenhüttenstadt (Germany) and Grenoble (France), April 5, 2023

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