ArcelorMittal Halted Green Steel Transition Plans at German Steel Plants

SEATTLE (Scrap Monster): Luxembourg-based world’s leading steel producer ArcelorMittal has decided to suspend its ambitious plans to transition two of its German steelmaking facilities to green steel production.

Earlier, the company had planned to decarbonize its flat steel mills in Germany, located at Bremen and Eisenhuttenstadt. The move was aimed at significantly lowering carbon emissions from its steelmaking facilities. However, the company has now withdrawn from the project. It blamed financial impracticality and adverse market conditions as the reasons behind the decision.

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The original transition plan was estimated to cost around $2.9 billion, with the German government pledging to support the project by offering nearly half of that amount in the form of subsidy.

However, the company stated that it will go ahead with its long term sustainability goals by shifting its focus to build electric arc furnaces, so as to enable low-carbon production, while admitting that it may be increasingly unlikely to achieve its 2030 carbon emissions intensity target.

At the same time, it called upon the European Commission and various national governments, including Germany, to offer enhanced support to green steel initiatives.