The company plans to invest 2.5 billion euros in replacing blast furnaces with electric arc furnaces at the Bremen and Eisenhuttenstadt plants
The German Federal Ministry for Economic Affairs and Climate Change has announced its intention to provide €1.3 billion in subsidies for the decarbonization of ArcelorMittal's German steel operations. The announcement was made by German Economy Minister Robert Habeck during a visit to the company's factory in Bremen, Kallanish reports.
According to Robert Habeck, this project is still subject to approval by the European Commission.
ArcelorMittal's German subsidiary plans to replace two blast furnaces at its plants in Bremen and Eisenhüttenstadt with electric arc furnaces. This project is estimated to cost 2.5 billion euros in total.
“This news from Berlin encourages us to continue preparations for the transformation of the two factories. Over the next 12 months, we will carry out engineering work on the project,” said Thomas Bünger, CEO of ArcelorMittal Bremen and Eisenhüttenstadt.
The financial support, albeit preliminary, gives ArcelorMittal confidence that the company can count on government assistance to be provided to other German steelmakers with green ambitions. Salzgitter, Thyssenkrupp Steel, Saarland Dillinger and Saarstahl have already received grant guarantees for their respective transition projects.
As the GMK Center previously reported, at the end of 2023, the German government coalition reached an agreement on the federal budget for 2024 and also reduced spending on the climate fund. The budget for next year will be reduced by 17 billion euros by cutting federal grants, environmental subsidies and certain expenses in several ministries. In particular, expenditure from the Climate and Transformation Fund (KTF), which is not part of the regular budget, will be reduced by €12 billion in 2024 and by €45 billion by 2027.
German steel association WV Stahl commented on the situation, noting that the transitioning industry needs legal and financial security, planning security for companies that are ready to invest billions in new and transformational technologies.
