ArcelorMittal seeks partners from the energy sector and funding to curb carbon emissions from steelmaking in its German operations, according to Reuters. The company wants to replace carbon and increase the use of scrap metal.
ArcelorMittal’s announcement follows developments where Europe’s steelmakers are under pressure to cut carbon emissions while maintaining profitability in a competitive market.
The company estimates it would cost between 1-1.5 billion euros to transform its Bremen and Eisenhuettenstadt plants.
ArcelorMittal’s ‘smart carbon’ process would use carbon recycled from bioenergy, green electricity, and carbon capture and usage.
The company plans to close a blast furnace in each of the two plants and build electric arc furnaces for scrap smelting.
ArcelorMittal would reduce the iron ore plant at EKO, which could be run on gas instead of coal, and later with hydrogen.
In France, the Finance Minister revealed ArcelorMittal was investing 63 million euros in cutting carbon emissions at the Fos-sur-Mer plant, which includes a 15 million euros subsidy from the state.
ArcelorMittal Europe CEO Geert Van Poelvoorde has called on the EU to implement border protection tariffs of imported steel from countries with heavy carbon loads.
Steel costs are expected to rise by around 60% due to a cleaner manufacturing process.
ArcelorMittal stock is currently gaining. MT: AMS is up 5.74%
