ArcelorMittal halts plans for steelmaking using hydrogen in Germany

For the time being, steel corporation ArcelorMittal will not be converting its blast furnace-based locations Bremen and Eisenhüttenstadt to climate-neutral production using hydrogen. Planning uncertainty was making it impossible to continue its DRI-EAF plans, the steelmaker said. This means that the company will not be claiming state funding.

The contract with the German Federal Government concerning funding to the tune of 1.3 billion Euros called for commencement of construction by June 2025. Originally, ArcelorMittal intended to replace one blast furnace in Bremen and one in Eisenhüttenstadt by 2030. A direct reduction plant (DRI) and an electric arc furnace (EAF) were to be built in Bremen. The new plants had been anticipated to use so-called green hydrogen.
ArcelorMittal cited the market situation and high energy prices as reasons for its decision. It was becoming ever clearer, it said, that the energy revolution was advancing more slowly than expected across the board. Green hydrogen was not yet a viable energy source, and DRI production based on natural gas was not competitive as an interim solution, the company reported.
The first new EAFs were being built in countries that were able to offer competitive and predictable electricity provision, ArcelorMittal explained. It announced its building of the next electric arc furnace in Dunkirk (France) in May.
Source: ArcelorMittal