Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

ArcelorMittal’s direct reduction of iron ore (DRI) and electric arc furnace (EAF) plant in Hamburg is preparing to switch to using hydrogen fuel to significantly reduce its CO2 emissions. Two blast furnaces (BFs) in Germany will switch to natural gas in 2021 and DRI systems will be set at these plants. Later, natural gas will be replaced by hydrogen.

 

ArcelorMittal is aiming towards carbon-neutral steel production in Europe by 2050, with plans to reduce CO2 emissions by 30pc by 2030. To attain these goals, the company is deploying smart technologies in the BF process along with an innovative DRI method in combination with EAF. The company’s Hamburg plant is already operating a DRI system and EAF, which is being modified to use hydrogen as fuel.

 

Germany is setting up the regional North German Clean Hydrogen Coastline network dedicated to the production, storage and transportation of hydrogen. The network will provide the hydrogen infrastructure alongside which ArcelorMittal will build a large-scale DRI plant in Bremen and a pilot plant in Eisenh√ľttenstadt combined with EAFs by 2026. The aim is to produce 3.5mn mt steel at significantly lower CO2 emissions. The project could reduce CO2 emissions by 5mn mt compared to current BF technologies but would require massive investments and increase production costs.

 

ArcelorMittal Germany has an annual output of around 8mn mt crude steel. The company has two integrated flat steel mills and two long steel mills in Germany. 

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