Decarbonization
Breaks for “green” steel – ArcelorMittal changes plans
The ride of “green” hydrogen does not get going, the electricity prices in Germany are high. This now has enormous consequences.
Breaks for the “green” conversion of the steel industry in Germany: ArcelorMittal Europe does not follow plans for decarbonizing the flat steel works in Bremen and Eisenhüttenstadt, as the group announced. Due to the market situation and the lack of economy of CO2-reduced steel production, the investments could not be continued. The group does not use government funding.
Arcelormittal referred to an obligation to inform the decision – since the contract with the Federal Government proved to be the start of the construction work for the project by June 2025. Specifically, it is about the construction of so -called direct reduction systems (with hydrogen) and so -called electrol light arc stoves (with electricity).
“We appreciate the financing by the federal government and the state of Bremen as well as the support of the State of Brandenburg for this project,” said Geert van Poelvoorde, head of ArcelorMittal Europe. But even with the financial support, the economy of the changeover is not sufficient.
Bremen Senate reacts upset
The Bremen Senate spoke of “canceling the decarbonization of the huts”. The Senate is deeply disappointed and upset after politics and companies had worked together for so long from a perspective for the Bremen steelworks. The Senate provided a good 250 million euros for the conversion of the steelworks under great efforts.
Mayor Andreas Bovenschulte (SPD) said: “The fact that Arcelor-Mittal says goodbye to the transformation of the steel industry is not just a difficult blow for the Bremen business location and for the future of the hut. It is above all a difficult blow for employees and their families.” Bovenschulte called for a commitment to the work and steel production in Bremen from the group.
Brandenburg; Protect jobs
Brandenburg’s Prime Minister Dietmar Woidke (SPD) said the state government was doing everything possible to protect the workplaces in the steel mill in Eisenhüttenstadt with the employees, the mayor, the company and all participants. “The industrial location of Germany and Europe must not be endangered.” Economic Minister Daniel Keller (SPD) said: “We regret that the company does not take advantage of the promised funding due to the difficult framework conditions and funding requirements as well as the great competitive pressure on the international steel markets.”
ArcelorMittal will concentrate on planning for the construction of electric laying stoves in Bremen and Eisenhüttenstadt. Electric light arch stoves are electricity -based.
ArcelorMittal originally wanted to replace a blast furnace in Bremen and one in Eisenhüttenstadt by 2030. A so -called direct reduction system and a so -called electrical light arch stove were to be set up in Bremen. The new systems should use “green” hydrogen perspective.
The company had repeatedly stated that the prerequisite for the conversion of steel production were competitive electricity prices and sufficient hydrogen. From the point of view of the energy industry, hydrogen is not yet sufficiently available and far too expensive. In addition, companies in Germany have long been complaining about high electricity prices in international comparison.
Problems with hydrogen and electricity price
The steel industry is one of the largest CO2 emitters in Germany. It plays a key role so that climate goals can be achieved in Germany. A key role in decarbonization is intended to play the use of “green” hydrogen for steel production instead of coke coal, via direct reduction systems (DRI). Hydrogen is referred to as “green” when it is made from wind and sun based on renewable energies.
ArcelorMittal said that “green” hydrogen was not yet a sustainable energy source and the DRI production based on natural gas as a temporary solution was not competitive.
The conversion of blast furnace to electric laying stove means the change of coal as an energy source to an oven that is operated with natural gas and electricity. But: “The current electricity prices in Germany are high in international comparison and compared to neighboring European countries.”
The first new electric laying stoves would be built in countries that could offer a competitive and predictable power supply. Arcelormittal said in May to build the next electric layer stove in Dunkirk in France.
The group continued to state that he would keep in the goal of further improving the CO2 balance of its facilities-even if it is becoming increasingly unlikely to reach the CO2 reduction targets by 2030. “It is becoming increasingly clear that the energy transition in all areas more slowly than expected.”
The German steel industry is in a crisis. In 2024, the raw steel amount generated remained at “recession level”, as the Stahl business association had announced. The companies made the enormous growth of cheap imports from China and non -competitive costs for electricity.
Poelvoorde said that the European steel industry is currently under an unprecedented pressure to maintain its competitiveness – and that is already without the additional costs required for decarbonization. “The European Commission and its Member States take steps to solve this problem with the steel and metals.” But that is too slow. Europe could receive a strong steel industry, but must act determined.
Former Federal Minister of Economics Robert Habeck (Greens) had promoted the conversion of the steel industry with grumbling funding. He had described the transformation of the steel industry as a huge contribution to climate protection. As an important customer, the steel projects made a decisive contribution to the high run of the hydrogen economy.
dpa
Source: Stern
