ArcelorMittal changes plans for ‘green’ steel at German sites

Steel company ArcelorMittal is altering its plans for “green” steel in Germany, the company said on Thursday.

Due to the market situation and the lack of economic viability of steel production with reduced carbon dioxide (CO2) emissions, the investments cannot be continued, the company said.

ArcelorMittal is obliged to officially inform the German government of this, as its government contract for funding of €1.3 billion ($1.5 billion) stipulated the start of construction work for the project by June 2025.

In response, the Economy Ministry said it regretted the decision by ArcelorMittal not to switch to climate-neutral production.

“This is a private-sector decision by the company,” the ministry said in response to an enquiry.

The ministry said it was important that no state funds have yet been disbursed.

It pointed out that three comparable projects from primary steel manufacturers are ongoing.

The projects – with Salzgitter Flachstahl, Thyssenkrupp Steel Europe (TKSE) and SHS (Stahl-Holding-Saar) – have received funding decisions totalling around €5.6 billion, with work already under way.

ArcelorMittal to focus on planning

In its statement, ArcelorMittal said it is to focus on planning the construction of electric arc furnaces in the northern city of Bremen and the eastern city of Eisenhüttenstadt, to be prepared for when this type of production becomes economically viable.

In Eisenhüttenstadt, the company said it will replace existing facilities. In Bremen, a direct reduction plant and a electric arc furnace are to be set up.

The new facilities are intended to use green hydrogen in the long term – that is, hydrogen produced with renewable electricity.