In a statement Wednesday, the two said they’ve signed a memorandum of understanding, agreeing to work together to advance carbon-neutral steel production at ArcelorMittal’s German mils. 

To that end, RWE and ArcelorMittal said they are assessing options for joint participation in tenders for offshore wind farms in the North Sea. They also are looking together for areas where electrolysis plants can be built, starting with a 70 MW pilot plant that would come online in 2026. 

“With the combination of RWE’s expertise in offshore wind farms and electrolyzers, and ArcelorMittal as a guaranteed buyer of the green electricity and hydrogen, the two companies believe they have excellent opportunities for a viable partnership arrangement. RWE and ArcelorMittal intend to conclude long-term purchase agreements for both wind power and green hydrogen,” the companies said. 

Reiner Blaschek, ArcelorMittal Germany’s chief executive, said the announcement is significant for several reasons. 

“It will provide us with the renewable, affordable electricity and green hydrogen that we need to produce low-emissions steel while remaining competitive in a global market. It also offers vital security in the supply chain, by integrating the supply of energy and hydrogen into our business. We are looking forward to working with RWE on this highly important project and benefiting from their experience and know-how, as we continue to lead the industry in the decarbonization of steelmaking in Germany and beyond,” he said.