In Germany, ArcelorMittal Europe recently announced that, regrettably, it cannot proceed with its previously announced DRI and EAF plans for the decarbonization of its flat steelmaking sites in Bremen and Eisenhüttenstadt. ArcelorMittal had already stated in November 2024 that it was unable to take final investment decisions on constructing new DRI-EAF assets in Europe, given that the policy, energy and market environments had not moved in a favorable direction. The company had also said at that time it was evaluating a phased approach to decarbonization in Europe, starting with the construction of electric arc furnaces.
As the contract with the Federal government of Germany, for EUR 1.3 billion of financial assistance required construction on the DRI-EAF project to commence by June 2025, ArcelorMittal Germany has been obliged to formally notify the government that it cannot proceed with these investments, given the realities of the market and the economics of low-carbon emissions steelmaking.
In line with the company’s intention to take a phased approach to its decarbonisation in Europe, the next step in Bremen and Eisenhüttenstadt will focus on detailed planning for the construction of electric arc furnaces, to be ready for a scenario in which there is a strong business case for EAF-based production in these sites.
Tags: ArcelorMittal Europe, Germany, green hydrogen
Category: Fuels
