ArcelorMittal (AM) is seeking public funding and partners in Germany to turn its operations green. Facing spiraling pollution permit costs and strong competition, the global steelmaker is searching for renewable energy partners to move its production process to one with a lower carbon footprint. The project upgrades could reduce carbon emissions by a total of 5mn mt annually.
Geert Van Poelvoorde, the chief executive officer of ArcelorMittal Europe, noted that Germany and the EU needed to inject up to 60pc of total investments for the German plants to progress in early 2022 and be commissioned between 2025-2030.
The move towards green steel could increase finished steel costs by 60pc. Van Poelvoorde also called for tariffs to protect the region from imports with higher pollution production processes to support the new green steel investments.
The upgrades necessary to increase the use of scrap metal and incorporate sustainable energy sources at its Bremen and Eisenhuettenstadt plants are estimated to cost €1-1.5bn ($1.2-1.8bn). The project would entail building an electric act furnace at each site to facilitate the decommissioning of a corresponding blast furnace.
The project also includes direct reduction iron ore (DRI) plants at each site that would operate with natural gas initially and transition to hydrogen as the infrastructure becomes available. DRI reduces carbon emissions by two-thirds compared to integrated blast furnaces.
In France, ArcelorMittal is spending €63mn at its Fos-sur-Mer plant with 24pc of funding provided via a government subsidy.
($1= €.85)