ArcelorMittal delays planned green investments for EU
ArcelorMittal is the second largest steelmaker in the world. It announced on Friday that it was delaying green investments due to uncertainty over European Union regulations.
ArcelorMittal received 850 million Euros ($885 million) from the French Government in January to support its 1.7 billion Euro decarbonisation programme in France through 2030 at its Dunkirk site and Fos-sur-Mer site.
ArcelorMittal said on Friday that it had not yet made final investment decisions for these projects. This includes the replacement of 2 out of 3 blast furnaces at Dunkirk with green hydrogen-powered installations.
In an email, the company stated that "we are operating in a challenging market and there are many policy uncertainties which are impacting on the industry."
The report added that "we need an effective carbon-border adjustment mechanism as well as stronger trade defense measures to strengthen the business case."
ArcelorMittal said it is also awaiting the European Commission's final decision on the Steel and Metals Action Plan.
Philip Gibbs, KeyBanc's analyst, said that Arcelor is very consistent with its comments. It has stated it will not commit to decarbonization expenditures unless broader EU policies are in place.
European steelmakers are among the world's biggest CO2 emitters. They face intense pressure from China to reduce their emissions and maintain profitability.
It depends on where you are. Axel Eggert, Eurofer's Director General, said that in some regions the situation is so bad they are not investing anymore.
Green hydrogen is produced by splitting water into oxygen and hydrogen using renewable energy sources such as wind or solar. The technology is in its infancy, and it is also relatively expensive.
Thyssenkrupp, Germany's steel giant, announced in October that it was reviewing its 3-billion-euro plan to produce green steel. This highlights the challenges faced by industry in meeting emission targets and remaining competitive. Reporting by Anna Peverieri, Alban Kacher and Alexander Smith.
(source: Reuters)
