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ArcelorMittal: Bremen steelworks remains in the coal era instead of hydrogen!
Wolfgang Gerke criticizes ArcelorMittal's decision against hydrogen production in Bremen, which has economic consequences.
ArcelorMittal: Bremen steelworks remains in the coal era instead of hydrogen!
The salt in the soup of Bremen's economy could be in danger: Wolfgang Gerke, a respected expert in corporate strategies, has sharply criticized ArcelorMittal's decision to initially reject the conversion of the Bremen steelworks to hydrogen production. Gerke described this step as “sneaky” and “a mess”. This decision comes as a surprise to many, especially the Bremen Senate and the CDU, who had relied on the adaptability of the location.
An ambitious project was on the horizon. ArcelorMittal finally had the momentum to leave coal and coke behind and make the leap to hydrogen production. But with the rejection of a project worth billions, which also affected the transformation in Eisenhüttenstadt, uncertainty arises. As the daily news reported that funding totaling 1.3 billion euros was on the table, but the lack of economic efficiency and the low availability of hydrogen led to the company changing course.
Why the decision is so painful
ArcelorMittal's decision to reject the change came at a time when pressure from rising CO2 certificates and high energy costs was increasing noticeably. Forecasts assume that conventional steel production in Europe, and therefore also in Bremen, could no longer be viable in around five years. Gerke suspects that the company is trying to maintain conventional production methods as long as possible in order to maximize profits before the doors are closed.
The impact of this decision not only affects jobs in Bremen, but also has a broader impact on the German steel industry. Finally, this sector makes a significant contribution to the country's CO2 emissions. Mayor Andreas Bovenschulte has already emphasized that there is “no alternative” to decarbonizing the steelworks.
A look into the future
What helps in this situation? The experts agree: determined cooperation from all those involved is required. As the Oliver Wyman Analysis shows that innovative approaches to steel production could not only help to significantly reduce CO2 emissions, but also secure Germany's technological leadership. However, a committed network of politics, business and research is needed to put this ambition into practice.
The Bremen Senate has set up a special fund worth 250 million euros. With federal support, a total of 1.3 billion euros would have been available to advance the transformation of the steelworks. But now the question arises: What happens next? The Bremen Senate is disappointed and has already raised critical voices in politics.
The coming years could be decisive in determining whether Bremen remains as a business location or slides into insignificance. The hope for a gradual switch to more environmentally friendly production methods remains - because green steel could be the key to a sustainable future. But without the willingness of the actors to dare to try new things and emphasize collaboration, this dream could collapse faster than you think.