German energy supplier EWE and utility company SWB are making progress on a project for a 10-MW electrolysis plant in Bremen that will produce green hydrogen for the decarbonization of the steel industry and the mobility sector in the region.

The two partners have selected Rostock-based Apex Group to set up an electrolysis plant at SWB's power station, Bremen Mittelsbueren. The electrolyser is expected to come into operation in 2024, SWB said on 6 July.

Additionally, a contract has been signed with ArcelorMittal. which will offtake the hydrogen from the plant to use it for raw iron production and processing at its site in Bremen in a bid to save tonnes of carbon dioxide emissions.

ArcelorMittal will use the first hydrogen in its existing plants and will introduce new production technologies so that it can produce climate-neutral steel in Bremen by the mid-2030s, said ArcelorMittal Bremen's chief executive Reiner Blaschek.

The project, known as Hydrogen for Bremen's industrial transformation (HyBit), is worth more than $20.35m and half of the required investments come from the state of Bremen.

The initiative is being implemented by Bremer Wasserstoff GmbH, a 50:50 joint venture of SWB and EWE.

The project is of particular importance as it comes at a time when efforts to achieve greater energy independence are in full swing, said Bremer Wasserstoff's co-head Thomas Kalkau.