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Steel industry in Germany: ArcelorMittal stops green plans!
Salzgitter remains a pioneer in green steel production, while ArcelorMittal is pausing its ambitions. An overview.
Steel industry in Germany: ArcelorMittal stops green plans!
Developments in the steel sector are currently on everyone’s lips. The focus is particularly on plans for green steel production after ArcelorMittal surprisingly stopped its projects in Germany. As Welt reports, high electricity costs and insufficient hydrogen availability are the main reasons for this decision. Despite an impressive funding volume of 1.3 billion euros, the company was unable to guarantee economic feasibility.
In contrast, competitors Salzgitter and Thyssenkrupp are continuing their transformation plans. Gunnar Groebler, CEO of Salzgitter, in particular sees the switch to hydrogen-based production methods as a “bridge” to the future. Salzgitter has already completed construction and plans to continue construction work at the headquarters.
Competitors' progress
Salzgitter announces that the first green steel should roll off the production line in the first half of 2027. The company has already concluded reservation agreements for the quantities produced, a clear strategy to secure the customer base. Groebler refers to a study that suggests that the classic blast furnace route will no longer be economical by the mid-2030s.
Thyssenkrupp Steel Europe is not remaining idle either. The company is planning to build a direct reduction plant in Duisburg, supported by around two billion euros in funding. Thyssenkrupp and Saar-Stahl-Holding's commitment to ongoing transformation projects underpins the industry's commitment to decarbonization.
The challenge of decarbonization
The challenges that the steel sector has to overcome are enormous. High energy costs and pressure from inadequate regulatory frameworks represent a significant hurdle. Groebler warned of the potentially negative consequences of a decline in steel production in Germany, as steel is a strategic resource not only for value chains, but also for infrastructure and defense.
On the positive side, ArcelorMittal still has plans in other regions, such as the construction of an electric arc furnace in Dunkirk, which should increase the company's flexibility. Their stated goals for decarbonization by 2050 also remain in place, as shown by their strategy for climate-neutral production in Europe, which also includes innovative approaches such as smart carbon technologies to significantly reduce CO2 emissions.
Innovations for a green future
Another exciting project comes from the SMS Group, which has developed a promising technology for CO2 reduction with the EASyMelt process. This process could provide a cost-effective way to upgrade existing plants while reducing emissions by over 60 percent compared to the traditional blast furnace route. The focus on flexibility and innovative technologies could provide the decisive advantage in global competition while at the same time avoiding major supply bottlenecks.
So the steel industry is at a crossroads. While ArcelorMittal has put its plans on hold, other companies are showing that with innovation and a clear commitment to decarbonization, a green future is possible. It remains to be seen how the tide will turn in the coming years and what role Germany will play in this.