The company said Thursday that steel company Arcelormittal is changing its plans for “green” steel in Germany.
The company said it was unable to continue investing due to market conditions and economic viability of steel production, with reduced carbon dioxide (CO2) emissions.
Arcelormittal is obliged to formally inform the German government because its 1.3 billion euro ($1.5 billion) government contract stipulates the start of construction of the project until June 2025.
In response, the Ministry of Economic Affairs said it regretted Arcelormittal’s decision and did not switch to climate-neutral production.
“This is the company’s private sector decision,” the ministry said in response to the investigation.
It is important that no state funds have been paid, the ministry said.
It noted that three comparable projects from major steel manufacturers are underway.
Work has been done with the projects, along with Salzgitter Flachstahl, Thyssenkrupp Steel Europe (TKSE) and SHS (Stahl -Holding -Saar).
Weapon table focused on planning
Arcelormittal said in its statement that it will focus on planning to build arc furnaces in the northern city of Bremen and the eastern city of Eisenhüttensadt in order to prepare for such production when this production becomes economically viable.
The company said in Eisenhüttensstadt that it will replace existing facilities. In Bremen, a direct reduction plant and arc furnace will be established.
The new facility aims to use green hydrogen for a long time – hydrogen produced by ready-to-use renewable electricity.
