ArcelorMittal provides update on its European decarbonization plans
ArcelorMittal has provided an update on its European decarbonization plans, indicating delays in its transition to lower-carbon DRI-EAF facilities. The company cites unfavorable European policy conditions, slow green hydrogen development, and customer willingness to pay premiums for low-carbon steel as key challenges. While maintaining its net-zero by 2050 commitment, the company is analyzing a phased approach starting with electric arc furnaces.
Current progress includes construction of a 1.1 million tonne EAF in Gijón, Spain, and expansion of Sestao plant capacity to 1.6 million tonnes by 2026. XCarb® low-carbon steel sales are expected to double to 400,000 tonnes this year. European operations have reduced absolute emissions by 28.2% since 2018.
ArcelorMittal ha fornito un aggiornamento sui suoi piani di decarbonizzazione in Europa, indicando ritardi nella transizione verso impianti DRI-EAF a basse emissioni di carbonio. L'azienda cita condizioni politiche europee sfavorevoli, lo sviluppo lento dell'idrogeno verde e la disponibilità dei clienti a pagare premi per l'acciaio a basse emissioni come sfide chiave. Pur mantenendo l'impegno di raggiungere la neutralità carbonica entro il 2050, l'azienda sta analizzando un approccio graduale partendo dai forni ad arco elettrico.
I progressi attuali includono la costruzione di un forno elettrico da 1,1 milioni di tonnellate a Gijón, in Spagna, e l'espansione della capacità dello stabilimento di Sestao a 1,6 milioni di tonnellate entro il 2026. Le vendite di acciaio a basse emissioni XCarb® sono previste raddoppiare a 400.000 tonnellate quest'anno. Le operazioni europee hanno ridotto le emissioni assolute del 28,2% dal 2018.
ArcelorMittal ha proporcionado una actualización sobre sus planes de descarbonización en Europa, indicando retrasos en su transición hacia instalaciones DRI-EAF de bajas emisiones de carbono. La compañía cita condiciones políticas europeas desfavorables, el lento desarrollo del hidrógeno verde y la disposición de los clientes a pagar primas por acero bajo en carbono como desafíos clave. Si bien mantiene su compromiso de alcanzar la neutralidad de carbono para 2050, la empresa está analizando un enfoque por fases comenzando con hornos de arco eléctrico.
El progreso actual incluye la construcción de un horno eléctrico de 1,1 millones de toneladas en Gijón, España, y la expansión de la capacidad de la planta de Sestao a 1,6 millones de toneladas para 2026. Se espera que las ventas de acero de bajo carbono XCarb® se dupliquen a 400,000 toneladas este año. Las operaciones europeas han reducido las emisiones absolutas en un 28,2% desde 2018.
아르셀로미탈은 유럽의 탈탄소화 계획에 대한 업데이트를 제공하며, 저탄소 DRI-EAF 시설로의 전환이 지연되고 있다고 나타냈습니다. 회사는 불리한 유럽 정책 조건, 느린 녹색 수소 개발, 저탄소 강철에 대한 고객의 프리미엄 지불 의지가 주요 도전 과제로 지목하고 있습니다. 2050년까지 탄소 중립을 유지하기로 한 약속에도 불구하고, 회사는 전기로부터 시작하는 단계적 접근 방식을 분석하고 있습니다.
현재 진행 상황에는 스페인 히혼에 110만 톤 규모의 EAF 건설과 2026년까지 세스타오 공장 용량을 160만 톤으로 확장하는 것이 포함됩니다. XCarb® 저탄소 강철 판매는 올해 400,000톤으로 두 배 증가할 것으로 예상됩니다. 유럽 operações은 2018년 이후 절대 배출량을 28.2% 감소시켰습니다.
ArcelorMittal a fourni une mise à jour sur ses plans de décarbonisation en Europe, indiquant des retards dans sa transition vers des installations DRI-EAF à faibles émissions de carbone. L'entreprise évoque des conditions politiques européennes défavorables, le développement lent de l'hydrogène vert et la volonté des clients de payer des primes pour l'acier à faibles émissions de carbone comme des défis majeurs. Tout en maintenant son engagement de zéro émission nette d'ici 2050, l'entreprise analyse une approche par étapes, commençant par des fours à arc électrique.
Les progrès actuels incluent la construction d'un EAF de 1,1 million de tonnes à Gijón, en Espagne, et l'augmentation de la capacité de l'usine de Sestao à 1,6 million de tonnes d'ici 2026. Les ventes d'acier à faibles émissions de carbone XCarb® devraient doubler pour atteindre 400 000 tonnes cette année. Les opérations européennes ont réduit les émissions absolues de 28,2 % depuis 2018.
ArcelorMittal hat ein Update zu seinen Dekarbonisierungsplänen in Europa bereitgestellt und festgestellt, dass es Verzögerungen beim Übergang zu DRI-EAF-Anlagen mit niedrigen CO2-Emissionen gibt. Das Unternehmen nennt ungünstige politische Rahmenbedingungen in Europa, langsame Entwicklungen im Bereich grüner Wasserstoff und die Bereitschaft der Kunden, Prämien für kohlenstoffarmen Stahl zu zahlen, als wesentliche Herausforderungen. Während das Unternehmen sein Ziel der Netto-Null-Emissionen bis 2050 beibehält, analysiert es einen schrittweisen Ansatz, der mit Lichtbogenöfen beginnt.
Der aktuelle Fortschritt umfasst den Bau eines 1,1 Millionen Tonnen schweren EAF in Gijón, Spanien, und die Erweiterung der Kapazität des Werks Sestao auf 1,6 Millionen Tonnen bis 2026. Die Verkäufe von kohlenstoffarmem Stahl XCarb® werden in diesem Jahr voraussichtlich auf 400.000 Tonnen verdoppelt. Die europäischen Betriebe haben die absoluten Emissionen seit 2018 um 28,2% gesenkt.
- Construction of 1.1 million tonne EAF capacity in Gijón, Spain, targeting 1 million tonnes CO2e reduction annually
- Expansion of Sestao plant capacity to 1.6 million tonnes by 2026
- XCarb® low-carbon steel sales expected to double to 400,000 tonnes
- 28.2% reduction in absolute emissions since 2018 in European operations
- Delay in implementation of DRI-EAF facilities due to unfavorable market conditions
- customer willingness to pay premiums for low-carbon steel
- Weak demand leading to lower production in European operations
- Higher capital and operating costs for decarbonization transition
Insights
ArcelorMittal's decarbonization update reveals significant challenges in implementing their European green transition strategy. The company is facing three major hurdles: slow green hydrogen development, uncompetitive natural gas-based DRI production and weak carbon border adjustment mechanisms.
The delay in major investment decisions until after 2025's policy reviews signals a strategic pivot. While the company has achieved a
The most concerning aspect is the customer willingness to pay premiums for low-carbon steel, suggesting potential market headwinds for green steel initiatives. This could significantly impact the company's future revenue streams and competitive position.
The announcement highlights critical gaps in Europe's green transition framework. The ineffectiveness of current carbon border adjustment mechanisms and insufficient trade protection measures against Chinese overcapacity expose serious policy shortcomings. The delay in implementation suggests that current EU climate policies may be misaligned with industrial realities.
The company's pivot to a phased approach, starting with electric arc furnaces, represents a more pragmatic strategy. However, the success of this approach heavily depends on upcoming policy developments in 2025, including the CBAM review and Steel and Metals Action Plan. The lack of coordinated policy support for both production and demand-side measures could significantly slow down the steel industry's decarbonization efforts.
26 November 2024, 08:30 CET
ArcelorMittal is today providing an update on its decarbonization plans in Europe.
The Company has previously announced the intention to invest in lower carbon emissions “hydrogen ready” DRI-EAF facilities to replace several blast furnaces across our European business, as a key strategic first step towards reducing emissions. In all cases, the host countries offered funding support for these projects, with the approval of the European Commission.
These projects were premised on a favourable combination of policy, technology and market developments that would facilitate decarbonization investment by helping offset the significantly higher capital and operating costs that this transition strategy would involve. This included being able to use natural gas until green hydrogen became competitive.
However European policy, energy and market environments have not moved in a favourable direction. Green hydrogen is evolving very slowly towards being a viable fuel source and natural gas based DRI production in Europe is not yet competitive as an interim solution. Furthermore, there are significant weaknesses in the carbon border adjustment mechanism (CBAM), trade protection measures need strengthening in response to increasing imports due to overcapacity in China, and there is limited willingness among customers to pay premiums for low-carbon emissions steel.
Before taking final investment decisions it is necessary to have full visibility on the policy environment that will ensure higher cost steelmaking can be competitive in Europe without a global carbon price.
We expect several important developments in 2025, including the scheduled review of the CBAM, an anticipated review of the steel safeguards, and the publication of the Steel and Metals Action Plan. When complete, these initiatives will provide the parameters needed to shape the business case for decarbonization investments in Europe.
In the meantime, we are continuing with engineering work, as well as analysing a phased approach that would first start with constructing electric arc furnaces, which can also be fed with scrap steel to significantly reduce emissions.
ArcelorMittal remains committed to decarbonizing and achieving net-zero by 2050. Activity undertaken in Europe to date includes:
- In May we commenced construction on a 1.1 million tonne capacity EAF at our long products plant in Gijón, Spain. This will ultimately lead to a reduction of 1 million tonnes of CO2e a year.
- Good progress is being made with our efforts to increase production to 1.6 million tonnes a year by 2026 at our flat products plant in Sestao, Spain, where we have two EAFs. Once complete, much of this production will be our XCarb® recycled and renewably produced low-carbon emissions steel.
- We continue to lead the market with sales of our XCarb® low-carbon emissions steel, which have a carbon footprint of as low as 300kg per tonne of steel produced, and are on track to double sales to c. 400,000 tonnes this year.
The longer timeline required for final investment decisions will not impact the Company’s ability to meet customer demand for low-carbon emissions steel as the Sestao revamp project will materially increase the Company’s ability to produce low-carbon emissions flat products.
Any revision to the current 2030 intensity targets will be set out in the forthcoming Climate Action Report 3. From an absolute emissions perspective, the absolute emissions of the Company’s operations in Europe have reduced by
Longer term, the Company remains committed to all technologies that offer the potential to take steelmaking to near-zero. This includes carbon capture utilisation and storage (CCUS), although like green hydrogen, this technology is likely to only make a meaningful difference after 2030. It already has one industrial scale CCU facility operational at its plant in Gent, Belgium, and a further two pilot projects underway in Gent.
Aditya Mittal, Chief Executive, ArcelorMittal, commented:
“ArcelorMittal remains absolutely committed to decarbonization. It is the right thing to do, both for the company and the planet. I remain confident that we can still achieve our net-zero by 2050 target, but the shape of how we will achieve this could differ from what was previously announced.
“We have been very grateful for the support offered to date by different governments to help accelerate this process. But 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.
“I hope to see new policies coming into play that will support an accelerated transition. The Green Deal Industrial Plan and the Steel and Metals Action Plan, and the legislation flowing from them, will be important, as well as regulation to stimulate the demand signal. 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.
“I expect policy decisions taken in 2025 will help bring clarity on how we will move forward to decarbonize our assets, taking advantage of our unique global profile, superior technology and raw materials mix and industry leading innovation.”
ENDS
About ArcelorMittal
ArcelorMittal is one of the world’s leading integrated steel and mining companies with a presence in 60 countries and primary steelmaking operations in 15 countries. It is the largest steel producer in Europe, among the largest in the Americas, and has a growing presence in Asia through its joint venture AM/NS India. ArcelorMittal sells its products to a diverse range of customers including the automotive, engineering, construction and machinery industries, and in 2023 generated revenues of
Our purpose is to produce smarter steels for people and planet. Steels made using innovative processes which use less energy, emit significantly less carbon and reduce costs. Steels that are cleaner, stronger and reusable. Steels for the renewable energy infrastructure that will support societies as they transform through this century. With steel at our core, our inventive people and an entrepreneurial culture at heart, we will support the world in making that change.
ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS).
http://corporate.arcelormittal.com/
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FAQ
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