Westfalen Group to Supply Green Hydrogen to ArcelorMittal in France
Key Ideas
  • Westfalen Group is building an electrolyser in northeast France to supply green hydrogen to ArcelorMittal's steel plant in Florange, aiming to decarbonize steel production.
  • The electrolyser project signifies a shift from grey hydrogen to electrolytic hydrogen, with plans for future hydrogen refueling infrastructure, showing a commitment to clean energy.
  • ArcelorMittal faced scrutiny over its decarbonization plans and subsidy use, with allegations of misusing funds meant for green hydrogen adoption, but the company denies claims and highlights the need for cost-effective green hydrogen.
  • Both Westfalen Group and ArcelorMittal are investing in transitioning to green hydrogen technologies to reduce emissions and ensure competitiveness in the evolving market.
Westfalen Group, a German industrial gas firm, is set to supply green hydrogen to ArcelorMittal's steel plant in Florange, France. The project involves the construction of an electrolyser in northeast France, marking a significant step towards decarbonizing steel production. The electrolyser will replace the existing grey hydrogen supply with electrolytic hydrogen starting from 2026 under a long-term contract extending into the 2040s. The investment for the project is expected to be in the double-digit million range. Additionally, plans include the construction of a hydrogen refueling station nearby, indicating a broader commitment to clean energy solutions. Dr. Thomas Perkmann, CEO of Westfalen Group, expressed optimism about the project opening new opportunities in the hydrogen market. ArcelorMittal, a major steel producer, faced criticism over its decarbonization plans and the handling of subsidies intended for green hydrogen adoption. Steel advocacy group SteelWatch raised concerns about the company's alleged backtracking on commitments to use green hydrogen in steelmaking processes. However, ArcelorMittal defended its position, stating that the current availability and cost of green hydrogen in Europe posed challenges to its adoption for steel production. The company emphasized its ongoing testing of hydrogen direct reduced iron (DRI) technology to prepare for a transition when viable green hydrogen options become accessible. Despite the scrutiny, both Westfalen Group and ArcelorMittal remain focused on transitioning to green hydrogen technologies to reduce emissions and align with evolving environmental standards. The partnership between the two companies signifies a proactive approach to sustainability and highlights the importance of collaboration in driving the transformation towards cleaner energy sources in the steel industry.
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