EUR 55 million for steel production with green hydrogen

24 February 2023
Federal funding to drive decarbonisation of industry in Hamburg - Arcelor Mittal focusing on green hydrogen production

The German government has earmarked EUR 55 million in funds allowing Arcelor Mittal to convert its steel production to green hydrogen from renewable energies after the European Commission approved the funding, a press release said Wednesday (February 22, 2023) The project allows Hamburg to play an even greater pioneering role in decarbonising industry and setting up a hydrogen sector. Arcelor Mittal now hopes to save about 700,000 tonnes of CO2 emissions annually by 2030.

Achieving climate goals through technological progress

"Decarbonising industry is one of the most important levers for achieving our climate goals," said Jens Kerstan, Senator for the Environment. The ministry has accompanied ArcelorMittal from the very beginning in its conversion to low-CO2 steel production. "The production of green steel in Hamburg is within reach following the approval of federal funding by the EU," he added. "Companies across Hamburg value a reliable energy supply. Wind energy, for instance, is plentiful here in the north. Hydrogen makes this energy storable and transportable," said Dr Melanie Leonhard, Senator for Economics. The joint project shows that climate goals can be pursued through technological progress, she added.

CO2-neutral steel production with green hydrogen

Reiner Blaschek, CEO of Arcelor Mittal Germany welcomed the consent: "The EU Commission's approval gives us the opportunity to plan the next steps in Germany, which we will now carefully consider. This is an essential prerequisite for driving forward the conversion of our plants in Germany and demonstrating the full use hydrogen." Arcelor Mittal plans to build its first hydrogen-based plant in Hamburg instead of natural gas for steel production. Sufficient quantities of hydrogen must be available and at affordable prices to drive environment-friendly production. The required hydrogen will be produced by electrolysis of water from renewable energies. Arcelor Mittal wants to produce more than 1 million tonnes of carbon-neutral steel per annum in Hamburg by 2030.


Sources and further information

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