ArcelorMittal stops climate project: Future of the steelworks in danger!

ArcelorMittal stops climate project: Future of the steelworks in danger!

Eisenhüttenstadt, Deutschland - In a surprising turn, ArcelorMittal put the planned construction work on new electric stoves in Eisenhüttenstadt and Bremen. The decision that could mean a significant setback for the desired climate-neutral steel production is according to rbb24 Market situation and the lack of economy. Originally, the company wanted to produce steel from Eisenhüttenstadt by 2050, but the implementation of these ambitious plans seems to be ahead.

The difficulties that ArcelorMittal joins are complex. Green hydrogen, which was brought into play as a future energy source, is considered not sustainable. At the same time, the production based on natural gas is not competitive enough to convince the market. The plans for an investment of a total of 2.5 billion euros would also have planned to start construction until June 2025. These funds would only be part of the extensive funding pot, from which 1.3 billion euros were made available for transformation into a climate -friendly steel production last year.

a setback for the region

Brandenburg's Prime Minister Dietmar Woidke and Minister of Economics Daniel Keller have already made their concern about the decision. Woidke emphasizes the need to protect jobs in the steel mill, which has been in operation since 1951 and currently has around 2,700 employees. Keller plans to discuss talks with the company and other affected actors to redesign the future of the steel mill. The challenges in the industry are enormous, especially due to cheap imports from China and the high electricity costs in Germany.

The future of steel production

Despite the setbacks, ArcelorMittal does not want to give up the plans for the environmentally friendly electric layer stoves. If the conditions are correct, these could bring advantages in the future. The company emphasizes that competitive electricity prices and a sufficient range of hydrogen are crucial for the changeover. But the current pressure on energy prices and the availability of hydrogen does not make the situation easier. In the meantime, it remains to be seen how those responsible will master the challenges of steel production on a political and economic level and take the necessary steps for sustainable transformation.

The decisions of ArcelorMittal and the associated developments will certainly shape the discussion about the future of the steel industry in Germany and are another example of the difficulties related to the implementation of climate boards.