Technological change within steel production is an important project for the future at ArcelorMittal. For the sites Bremen and Eisenhüttenstadt, the corporation already worked out a detailed transformation plan and launched financial support for the project in 2021.
Robert Habeck, the Federal Minister for Economic Affairs and Climate Action, has now declared financial support of almost 1.3 billion euros for the giant transformation project during an extraordinary works meeting at the site in Bremen – co-financed by the Bremen municipality and pending agreement from the EU competition authority in Brussels. Even if further steps are still needed before any investment decisions at ArcelorMittal can be finalised, the news was met with a positive response – other than management, works council and employees, the mayor of Bremen Andreas Bovenschulte and representatives of IG Metall were also present.
The CEO of ArcelorMittal Europe – Flat Products, Reiner Blaschek, comments: “With our corporate strategy XCarb®, we are working on a pioneering project for the future of steel production – including at Bremen and Eisenhüttenstadt. After a long period of deliberation by the authorities, we are now happy that, with this news from the Federal Government, we can now take the next step towards climate-neutral steel production in Germany; we have cleared the first hurdle. Using green hydrogen, we could reduce emissions by more than 6.3 million tonnes of CO₂ every year by 2023 and produce 3.4 million tonnes of carbon-reduced steel at both sites. The next challenge lies in sourcing sufficient quantities of renewable energy and green hydrogen – at a competitive price.”
Dr Thomas Bünger, CEO of ArcelorMittal Bremen and Eisenhüttenstadt, explains: “With this announcement from Berlin, we can continue working on preparing the transformation of our sites. As a first step, we have plans to reduce carbon emissions by approx. 60 percent by 2030. Now we must tackle the next steps for the transformation together with our motivated teams on site: Over the coming 12 months, we will drive detailed engineering and technical planning forward.”
Mike Böhlken, chairman of the works council at ArcelorMittal Bremen, says: “We are happy that Robert Habeck followed the invitation from the works council and IG Metall and came to Bremen with this good news. This signal from the Federal Government is an important step in the right direction. Green steel is the future of these works. This is only possible to achieve by working together with employees. Now we have to pull together to master the social transformation.”
Dirk Vogeler, chairman of the works council at ArcelorMittal Eisenhüttenstadt, says: “The transformation of our works in Eisenhüttenstadt is necessary for us to keep on producing steel in Eisenhüttenstadt in future. Our site is an important pillar of industry and employment in the state of Brandenburg. For this transformation, we need financial support and clear commitment from politicians. This is an important sign to show our colleagues that we won’t leave them by the wayside as we approach transformation, because we can’t do it without them!”
Politicians will continue to be called upon to guarantee the conditions for affordable green hydrogen and sufficient quantities of electricity, which are needed for the operation of the systems planned. The promised financial support in the amount of 1.3 billion euros is part of a greater project with an investment volume of approx. 2.5 billion euros for both sites. There are plans to construct electric arc furnaces in Bremen and Eisenhüttenstadt that are intended to eventually produce steel using renewable energy and a larger contingent of recycled scrap metal. Furthermore, a direct reduction system is to be installed in Bremen to produce the precursor sponge iron, initially using natural gas and switching to green hydrogen in the long term. Both in Bremen and Eisenhüttenstadt, the sponge iron is to be used to produce steel with significantly lower emissions.
