German government pledges ArcelorMittal decarbonisation funding

The German government has pledged €2.5 billion ($2.73 billion) in funding to decarbonise steelmaking at ArcelorMittal’s Bremen and Eisenhüttenstadt plants, as soon as funding approval is provided by Brussels.

The Federal Ministry of Economics and Climate Protection intends to support ArcelorMittal’s DRIBE project to transition to production using green hydrogen-based direct reduced iron feedstock initially produced at Bremen. ArcelorMittal submitted an application to the Brussels authorities for financial support in 2021.

“The early start of the measures we have requested sends an important signal: ArcelorMittal is ready to go down the path of decarbonisation,” ArcelorMittal Germany chief executive Reiner Blaschek says in a note seen by Kallanish.

“At our plants in Bremen and Eisenhüttenstadt, we are now taking concrete next steps to prepare for the construction of the plants, as far as this is possible before the EU funding commitment. This will help us to achieve the change in the way of production – which requires a complete change of technology. As soon as all approvals have been received and the conditions are right, we can prepare the next stage and hopefully start implementation quickly,” he adds.

ArcelorMittal announced in 2021 its plan to transition to DRI-EAF steelmaking at its German mills and produce up to 3.5 million tonnes/year of steel with significantly fewer CO2 emissions (see Kallanish passim). In Germany, ArcelorMittal’s largest market in Europe, the steelmaker saw revenue fall 13% on-year in the first half of 2023 to $3.7 billion amid a weak economic environment.

Adam Smith Poland