Global Oil & Gas giant bp and Germany’s largest steel maker thyssenkrupp Steel have signed a memorandum of understanding focused on the development of long-term supply of low carbon hydrogen and renewable power in steel production, helping accelerate the steel industry’s wider energy transition. The companies will explore supply options for both blue and green hydrogen, as well as power from wind and solar generation through the use of power purchase agreements. The companies also intend to jointly advocate for policies that will support the development of low carbon hydrogen and the growth of green steel in Europe.Thyssenkrupp Steel accounts for 2.5% of C02 emissions in Germany, mainly at the Duisburg site where the main emitters, the 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 intends to make steel production climate-neutral in the long term.Steel accounts for 8 to 11% of global C02 emissions. It is essential for the automotive and construction industries and for the manufacturing of industrial machinery. It also forms the foundation for a string of Decarbonisation technologies, including wind turbines, generators and smart power grids.Thyssenkrupp Steel currently produces 11 million tonnes of crude steel per year and is targeting the production of 400,000 tonnes of C02-reduced steel by 2025.bp is working to pursue green hydrogen production at its refineries in Lingen in Germany, Rotterdam in the Netherlands and Castellon in Spain. It is developing both blue and green hydrogen production projects around the world, including in the UK and Australia.