Backlash as ArcelorMittal shelves low-carbon steel plans

ArcelorMittal is delaying final investments on various ‘green steel’ projects in Europe. ‘European policy, energy and market environments have not moved in a favourable direction,’ the steelmaker says.  

ArcelorMittal insists it still intends to replace several of its European blast furnaces with ‘hydrogen ready’ direct reduced iron (DRI) electric arc furnace (EAF) facilities.
The company is now looking at a ‘longer timeline’ to realise these upgrades.

More support needed

‘We remain absolutely committed to decarbonisation,’ says ArcelorMittal ceo Aditya Mittal. ‘It is the right thing to do, both for the company and the planet.’

He explains the scale of the challenge requires further policy initiatives to unlock increased investment.  ‘We would have liked to move faster but the reality is the regulatory environment required to support the business case for investments is not yet in place.

‘While we do have customers that want low-carbon steel, those that do and are willing to pay a premium are still very much in the minority.’

The steelmaker believes policy decisions taken in 2025 are likely to provide clarity towards its decarbonisation efforts.

ArcelorMittal insists target of net zero by 2050 can still be achieved.

Shiny PR, no results

Climate campaign organisation SteelWatch has slammed the steel giant for ‘backtracking’ on a positive PR campaign after being awarded ‘billions’ in state funding.

‘Feasibility has got harder and current market conditions are tough but these are not good enough reasons to stall on investment in a future-fit industry,’ says Caroline Ashley, executive director at SteelWatch.

‘Short-term crisis thinking might see delaying change as prudent but, when transformation takes years and assets last decades, it’s not. It’s a risk.’

To Steelwatch, the announced delays seem motivated by ‘political games’. The announcement is ‘carefully timed’ for the incoming EU Commission, Ashley claims.
‘A clear play to leverage more subsidies and softer conditionality.’

She observes that a new plant in Gijon, Spain, was promised years ago with expected operation in 2025. The final investment decision is ‘long past due’. Meanwhile, the state aid contract for the steelmaker’s site in Dunkirk, France, was filed in early 2022.

‘None of today’s market or political shifts this year are responsible for those past three years of delay,’ Ashley argues. ‘Announcing shiny plans, then failing to follow, seems to be a well-rehearsed strategy that delivers PR wins for ArcelorMittal and nothing more.’