€55M to Help German Steel Production Become More Sustainable

The German Government has earmarked €55 million in funds to support ArcelorMittal to convert its steel production to hydrogen. Hydrogen Industry Leaders looks at how the project will allow Hamburg to play a role in decarbonising the steel industry.

Intended for the construction of a demonstrated plant in Hamburg, the funding commitment will help the plant transition to using hydrogen, instead of the natural gas that has been the case up to now.

In this direct reduction plant, directly reduced iron, so-called sponge iron is produced as a preliminary product for the steel production.

ArcelorMittal Germany has revealed that the conversation of the entire production at the site should save 700,000 tons of CO2 per year.

Reiner Blaschek, the CEO of ArcelorMittal Germany, explained that the funding is crucial to the next steps in the country’s decarbonisation efforts: “The decarbonization of steel production is one of the most important cornerstones for achieving the climate goals in Europe.

“The approval of the European Commission gives us the opportunity to plan the next steps in Germany, which we will now carefully examine. This is an essential prerequisite for driving forward the conversion of our plants in Germany and demonstrating the use of 100 per cent hydrogen.”