ArcelorMittal stops green steel plans: what does this mean for the region?

ArcelorMittal stops green steel plans: what does this mean for the region?

The steel group ArcelorMittal has revised its plans for the production of “green” steel in Bremen and Eisenhüttenstadt. The reason for this turnaround is the current high market conditions and the inadequate economic efficiency of CO2-reduced steel production, such as Mercury reported. The original plan was to build a direct reduction plant and an electric arc furnace in Bremen, which would eventually focus on green hydrogen. ArcelorMittal is now focusing on planning electric arc furnaces at both locations.

As part of a funding agreement that guarantees the federal government over 1.3 billion euros, the group is obliged to communicate these changes, as construction was set to begin by June 2025. The production strategies in Bremen and Eisenhüttenstadt should now be adapted to the economic circumstances.

New course towards decarbonization

Despite these changes, ArcelorMittal remains true to its long-term goal: to make steel production in Europe climate-neutral by 2050. On June 19, 2025, the group will present the 2020 climate protection report, which aims to reduce CO2 emissions by 30% by 2030. Instead of putting the plans on hold completely, work continues on the introduction of smart carbon technologies, and hydrogen also remains a central element of this strategy. The ArcelorMittal website informs about the start of the race towards decarbonization.

Another highlight in the conversion process is the H2H project, which was launched in 2019 and includes the construction of a direct reduction plant in Hamburg. An investment of 110 million euros is being raised there with the aim of achieving Clo2 reduction through natural gas and later through hydrogen. Measures such as the construction of an electrolyzer with an initial 100 MW, which will later be expanded to 300 MW, strengthen the company's ambitions to make steel production more environmentally friendly.

Future prospects in Bremen and Eisenhüttenstadt

For the Bremen and Eisenhüttenstadt locations, this means that the future strategies here too continue to be firmly characterized by change. In Eisenhüttenstadt, hydrogen will be used in the blast furnace as planned, and the installation of an electric scrap melting system is also being planned. These steps are part of a comprehensive approach to significantly improve the carbon footprint and achieve climate-neutral steel production by 2050. A combination of new technologies, such as the integration of hydrogen, is seen as key to long-term success.

ArcelorMittal not only stays on track, but also shows flexibility in implementing its ambitious plans for clean steel production in the future. Even if the specific steps in Bremen and Eisenhüttenstadt are now being modified, the overall goal of a climate-neutral company remains in focus.