The German government has approved a €1.3 billion financing package to support ArcelorMittal's transition to climate-neutral steel production at its steel mills in Bremen and Eisenhüttenstadt. This funding covers around half of the total investment required for the project.

According to German Economy Minister Robert Habeck, energy-intensive industries like steel must undergo decarbonization, which comes at a significant cost that companies cannot bear alone. The government's decision to provide financial assistance aims to ensure that these companies can continue their operations and complete the necessary green transformation.

ArcelorMittal plans to replace one blast furnace in each of its Bremen and Eisenhüttenstadt facilities with electric arc furnaces and a direct reduction unit by 2030. The new plants are expected to utilize green hydrogen as soon as it becomes available at competitive prices and in sufficient quantities. This transition is projected to reduce carbon emissions by up to 5.8 million tons per year, with the plants producing 3.8 million tons of CO2-reduced steel annually.

The company has already established partnerships with potential hydrogen suppliers and organizations to prepare for the next steps in this green transformation. ArcelorMittal has emphasized the need for a clear industrial policy and competitive energy prices as crucial factors for its final investment decision, which is expected to be made no later than mid-2025.

The steel industry's transition to climate-neutral production is a significant challenge, and the German government's financial support for ArcelorMittal's efforts demonstrates its commitment to enabling this transformation and maintaining a strong domestic steel industry.