Steelmaker ArcelorMittal has issued a warning that it may not proceed with its plans to decarbonise its steel plants in Germany unless it secures cheap electricity and a sufficient supply of renewables and hydrogen. On Friday, Thomas Buenger, head of the steelmaker’s German division, stated that without internationally competitive energy prices and adequate green electricity and hydrogen, there is an increased risk of industrial production capacity leaving the country.
Buenger emphasized that these conditions need to be met by mid-2025, the deadline for ArcelorMittal’s final investment decision on its €2.5 billion ($2.7 billion) decarbonisation plan for its German steel mills. Out of this total, around €1.3 billion are expected to be covered by German government subsidies, similar to the decarbonisation projects of peers Thyssenkrupp and Salzgitter, which also rely on public support.
Buenger mentioned that detailed planning and the review of the economic viability of the transformation plans are currently underway.
