ArcelorMittal to Invest in Major Expansion to its German Steelmaking Plants

SEATTLE (Scrap Monster): ArcelorMittal announced major investment at its German sites, as part of its efforts to reduce carbon emissions by boosting the implementation of carbon-neutral steel production and expanding its hydrogen infrastructure.

According to company press release, it plans to build a large-scale industrial plant for the direct reduction of iron ore (DRI) and electric arc furnace (EAF)-based steelmaking at its site in Bremen. Initially, ArcelorMittal plans to use natural gas for the DRI, which will later start using hydrogen from electrolysis.

Also, an innovative DRI pilot plant will be built in addition to an EAF in Eisenhüttenstadt. The additional hydrogen required will be generated from natural gas with the help of a pyrolysis plant that will be built on the steel plant’s premises.

The above investments will raise the steel production from these two sites, using green hydrogen, to approximately 3.5 million tonnes by 2030. The carbon savings from the plants are estimated at around 5 million tonnes. The technology conversion is expected to be carried out at an investment of €1-1.5 billion.

Reiner Blaschek, CEO of ArcelorMittal Flachstahl Deutschland sought necessary support and access to funding, to implement the expansion plan.

The company targets to reduce carbon dioxide emissions by 30% by 2030 in Europe and achieve carbon-neutral steel production by 2050.