ArcelorMittal may reconsider its plans to decarbonize its steel plants in Germany unless it secures affordable electricity and a reliable supply of renewables and hydrogen, the company cautioned on Friday.
“If the framework conditions with internationally competitive energy prices and available quantities of green electricity and hydrogen are not in place, there's an increased risk of industrial production capacity leaving,” said Thomas Buenger, head of ArcelorMittal's German division.
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) decarbonization project for its German steel mills. Approximately €1.3 billion of this investment is supported by German government subsidies, similar to the support received by peers Thyssenkrupp and Salzgitter for their decarbonization efforts.
Buenger added that the detailed planning and assessment of the economic viability of these transformation plans are currently in progress.
