ArcelorMittal - the global steel manufacturer - announces sales boost due to improving market conditions. - Habeck envisions steel sites geared up for future use
ArcelorMittal's steel plants in Bremen and Brandenburg will receive massive financial aid to transition to climate-neutral steel production, German Economy Minister Robert Habeck announced during a visit to the Eisenhüttenstadt steelworks in Brandenburg. A total investment of approximately 2.5 billion euros will go towards this transformation, with 1.3 billion euros coming from the government.
As energy-intensive industries need to ditch their reliance on fossil fuels that produce harmful greenhouse gases, Habeck underscored the necessity of such funding: "These companies can't bear the costs alone - we're essentially choosing whether they'll do it by themselves and shut down the sites or receive political support."
The CEO of ArcelorMittal Flat Steel Germany, Thomas Bünger, called it an important day for the company and its workers in Bremen and Eisenhüttenstadt, stating, "With this national funding decision, we've secured a portion of the costs needed for building and operating the new facilities for decarbonization."
Brandenburg and Bremen are thrilled by the news, too. Brandenburg's Economy Minister, Jörg Steinbach (SPD), emphasized the significance of the Eisenhüttenstadt facility's future, and Bremen's Senator for Economics, Kristina Vogt (Left), stressed that 12,000 jobs in the region depend on the Bremen plant, saying, "We're striving to transform Germany's industry while securing jobs and becoming independent in the process."
ArcelorMittal aims to exchange one blast furnace in each plant for electric arc furnaces and a direct reduction plant by 2030, eliminating the need for coal and coke in the traditionally coal-fired blast furnaces. The direct reduction process utilizes gases like natural gas or hydrogen to remove oxygen from iron ore.
If green hydrogen is available at competitive prices and in substantial quantities, the new facilities will employ it. These changes could potentially save up to 5.8 million tons of carbon dioxide per year and produce 3.8 million tons of reduced-CO2 steel.
However, ArcelorMittal has listed several prerequisites for an investment decision and implementation by mid-2025. International competitive energy prices, ample green hydrogen supplies, and a developed market for CO2-reduced steel that could create a competitive advantage are crucial. The EU Commission greenlighted the 1.3 billion euro funding back in February, which may also help free Germany from its dependence on fossil fuels from Russia. As the world's leading steel and mining company, according to their claims, ArcelorMittal's investment in green hydrogen and decarbonization can greatly affect the steel industry.
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ArcelorMittal, renowned worldwide steel manufacturer, saw an increase in sales due to better market conditions. This positive development came as German Economy Minister Robert Habeck visited the Eisenhüttenstadt steelworks in Brandenburg, where he outlined plans to invest around 2.5 billion euros to convert the steel plants in Bremen and Brandenburg to climate-neutral production. Habeck highlighted the necessity of government funding for energy-intensive industries transitioning away from fossil fuels, as they cannot afford to shoulder the costs alone.
CEO of ArcelorMittal Flat Steel Germany, Thomas Bünger, hailed the national funding decision as crucial for his company's future operations. Brandenburg's Economy Minister Jörg Steinbach and Bremen's Senator for Economics, Kristina Vogt, celebrated findings about the impact on local job security, with Steinbach accentuating the Eisenhüttenstadt facility's significance and Vogt emphasizing the Bremen plant's role in employing 12,000 people in the area.
ArcelorMittal aims to replace blast furnaces with electric arc furnaces and direct reduction plants by 2030 in both plants. The new facilities will switch from coal and coke to green hydrogen, reducing carbon dioxide emissions by up to 5.8 million tons annually and producing 3.8 million tons of reduced-CO2 steel.
However, ArcelorMittal specifies several requirements – competitive international energy prices, substantial green hydrogen supplies, and a developed market for CO2-reduced steel – for an investment decision and implementation by mid-2025. The EU Commission approved the 1.3 billion euro funding back in February, which may further assist in Germany's separation from fossil fuel reliance on Russia. This large-scale investment in green hydrogen and decarbonization by ArcelorMittal may significantly impact the global steel industry.
In relation to its transformation, ArcelorMittal's Eisenhüttenstadt facility in Brandenburg represents one of many significant German projects geared towards utilizing renewable energy sources and promoting alternative energies, contributing to Germany's broader commitment to climate change mitigation.
The city of Steinbach in Brandenburg, like Bremen, is proud of the role its steelworks play in Germany's industrial landscape and appreciates the steps towards climate-neutral production, understanding that the innovation brings both significant challenges and opportunities for the future of the steel industry in their country.
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