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

Global steel producer, ArcelorMittal announced, it had obtained a German state funding pledge of EUR55mn ($65.13mn) for the EUR110mn-investment for a Direct Reduced Iron (DRI) plant on Tuesday, according to reports. 


The Hamburg plant will incorporate green hydrogen to decrease iron ore in the steelmaking operation without the use of carbon dioxide (CO2). The company produces DRI with “grey hydrogen”, using natural gas. 


The investment is awaiting approval from the EU, said Environmental Minister, Svenja Schultze. 


The company aims to produce green steel by 2025 through a clean DRI acquired from a 50mw electrolyzer and melted with ferrous scrap in a green power fuelled EAF.


The plant will produce 100,000mt of DRI for green hydrogen-induced steelmaking by 2025, said the steelmaker’s Hamburg CEO, Uwe Braun. 


The company aims to produce 1mn mt of carbon-neutral steel per year in Hamburg by 2030 and save 800,000mt of CO2 per year. 


($1 = EUR0.84)

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