Germany's steel industry contributes about 7% of the nation's CO2 emissions. In aiming for carbon neutrality by 2045, significant reductions in emissions are needed, totaling 55 million metric tons annually. The former government promoted hydrogen as a sustainable alternative to coal for steel production with considerable subsidies. However, ArcelorMittal recently withdrew its decarbonization plans in Germany due to slow progress in the energy transition and challenges in the European steel market, which is experiencing weak demand and high import levels.
The German steel industry must cut up to 55 million metric tons of CO2 annually, amounting to about 30% of all industrial emissions according to the German Steel Federation.
The previous German government encouraged the use of hydrogen with large state subsidies to make steel production more sustainable, aiming to replace coal in the industry.
ArcelorMittal paused its carbon-neutral plans in Germany, citing slow progress on energy transition and the non-viability of green hydrogen as a fuel source.
Current conditions in the European steel market include weak demand and high levels of imports, applying unprecedented pressure on companies like ArcelorMittal.
Collection
[
|
...
]