By: ICN Bureau
Last updated : March 30, 2021 11:37 pm
The technology conversion requires investments in the range of €1-1.5 billion and would result in production costs that are around 60 per cent higher
ArcelorMittal is planning to build a large-scale industrial plant for the direct reduction of iron ore (DRI) and electric arc furnace (EAF)-based steelmaking at its site in Bremen, as well as an innovative DRI pilot plant in addition to an electric arc furnace (EAF) in Eisenhüttenstadt, following the announcement of the planned expansion of Germany’s hydrogen infrastructure.
Using green hydrogen, up to 3.5 million tonnes of steel could be produced by the Bremen and Eisenhuttenstadt sites by 2030, with significantly lower CO2 emissions. Depending on the amount of hydrogen available, CO2 savings of more than 5 million tonnes could be possible. The technology conversion requires investments in the range of €1-1.5 billion and would result in production costs that are around 60 per cent higher, compared with today.
"With our concept for the transformation of the plants in Bremen and Eisenhüttenstadt, we are accelerating the implementation of carbon-neutral steel production. These projects have the potential to have a significant impact in reducing CO2 emissions, in line with the European Union’s climate commitments. We are now asking for the necessary support and access to funding, to make the implementation of our plans happen " said Reiner Blaschek, CEO of ArcelorMittal Flachstahl Deutschland.
In Germany, the group already operates Europe’s only DRI-EAF plant in Hamburg, where the switch to using hydrogen instead of natural gas in the iron ore reduction process is being prepared. The objective is to reach industrial commercial maturity of the technology by 2025, initially producing 100,000 tonnes of sponge iron a year.