ArcelorMittal's Decarbonization Plans in Europe: Challenges and Commitment
Key Ideas
- ArcelorMittal plans to invest in 'hydrogen ready' DRI-EAF facilities across Europe to reduce emissions, supported by funding from host countries and the European Commission.
- Challenges include slow progress in green hydrogen development, lack of competitiveness in natural gas-based DRI production, and weaknesses in the carbon border adjustment mechanism.
- The company is progressing with engineering work and considering a phased approach, starting with constructing electric arc furnaces fed with scrap steel to reduce emissions.
- ArcelorMittal is committed to achieving net-zero emissions by 2050, with ongoing efforts in Spain including EAF construction in Gijón and production expansion in Sestao focusing on low-carbon emissions steel.
ArcelorMittal has provided an update on its decarbonization plans in Europe, focusing on investments in 'hydrogen ready' DRI-EAF facilities to replace blast furnaces and reduce carbon emissions. The company's initiatives, supported by funding from host countries and the European Commission, aim to overcome the challenges of transitioning to lower carbon emissions steel production. However, the slow progress in green hydrogen development and the lack of competitiveness in natural gas-based DRI production pose obstacles. The company is also facing challenges related to the carbon border adjustment mechanism and trade protection measures. Despite these challenges, ArcelorMittal remains committed to decarbonizing and achieving net-zero emissions by 2050. In Spain, the company has made significant progress with projects such as the construction of a 1.1 million tonne capacity EAF in Gijón, which is expected to reduce 1 million tonnes of CO2e a year. Additionally, efforts to expand production in Sestao with EAFs and increase the sales of low-carbon emissions steel demonstrate ArcelorMittal's commitment to sustainable steelmaking.