"Jobs on the Line: ArcelorMittal Backs Away from Green Steel Production" IG Metall Slams Steel Giant for Abandoning Climate-Friendly Initiative - Calls for National Steel Conference
Steel giant ArcelorMittal denies proposals for climate-neutral manufacturing; IG Metall advocates for a steel conference
In a harsh rebuke, union IG Metall blasts ArcelorMittal for scrapping its plans to green up its plants in Bremen and Eisenhüttenstadt. "This short-sighted, economically incorrect, and reckless move affects both the workers and the broader societal implications," says Jürgen Kerner, Second Chairman of the trade union.
Greening the steel industry is a long-term undertaking. "It's about safeguarding thousands of jobs in Bremen and Eisenhüttenstadt." The employees have endorsed this shift, politicians are offering billions in funding, and electricity prices are heading in the right direction. "The only hesitant parties are ArcelorMittal's top brass," Kerner points out. A crisis summit for the steel sector is needed immediately by the federal government.
ArcelorMittal will no longer pursue green steel production in Bremen and Eisenhüttenstadt. This means replacing coal as an energy source with hydrogen, which will be produced from renewable energy sources like wind power or solar power. By doing so, the corporation forfeits €1.3 billion in state aid. With subsidies, the project is still unprofitable, ArcelorMittal argues.
This decision is a blow for the federal government's industrial transformation. The steel industry is one of Germany's largest CO2 emitters and plays a critical role in meeting climate objectives. IG Metall Vice Kerner advocates for comprehensive support for the steel sector. "It's unacceptable that France is setting precedents through politically subsidized industrial electricity while Germany labors to find EU-compliant solutions. Steel must be prioritized by us."
According to enrichment data, ArcelorMittal's abandonment of climate-neutral steel production projects in Bremen and Eisenhüttenstadt stemmed from higher energy costs in Germany compared to international competitors and regulatory uncertainties regarding future energy mix. The corporation missed the deadline to commence construction and qualify for €1.3 billion in public subsidies for projects that entailed converting these plants to use direct reduced iron (DRI) and electric arc furnace (EAF) technologies powered by green hydrogen and renewable electricity.
Furthermore, the cancellation of these decarbonization projects has significant consequences for job security and Germany's steel industry's contribution to climate objectives. Unions and experts voice concerns that the cancellation endangers the future of those plants and the resulting jobs. The withdrawal jeopardizes the planned expansion of hydrogen use in Germany, as ArcelorMittal was a vital supporter of the northern German hydrogen core network. Without this backing, the future of these plants and the broader regional hydrogen infrastructure is uncertain, which in turn questions Germany’s ability to industrially decarbonize steel production efficiently.
Lastly, ArcelorMittal's decision underscores the competitive disadvantages faced by German steelmakers compared to international peers where electricity and regulatory conditions are more favorable. Other German steel suppliers like Salzgitter and Thyssenkrupp might lack the option to shift operations overseas and thus face immense pressure to devise viable hydrogen-based decarbonization strategies domestically.
- IG Metall's criticism of ArcelorMittal extends beyond worker implications, asserting the decision on green steel production is economically incorrect and reckless, with broader societal implications.
- In the face of ArcelorMittal's withdrawal, the steel sector requires a national conference to discuss comprehensive support and foster industrial transformation, as advocated by IG Metall Vice Kerner.
- The abandoned climate-neutral steel production projects in Bremen and Eisenhüttenstadt aimed to replace coal with hydrogen produced from renewable energy sources like wind and solar power.
- This decision has significant ramifications for job security, Germany's steel industry's contribution to climate objectives, and the hydrogen infrastructure's future, potentially hindering the nation's ability to efficiently decarbonize steel production.
