During a visit to ArcelorMittal's steelworks in Hamburg today, Federal Environment Minister Svenja Schulze pledged the German government's support for the construction of the first hydrogen-based DRI plant (DRI = Direct Reduced Iron) on an industrial scale in Germany. This demonstration plant, which uses hydrogen exclusively as a chemical agent to reduce iron ore to DRI, is intended to lay the foundation for a steel production process that enables the manufacture of steel withoutCO2 emissions[1] using electric arc furnaces that are fed with hydrogen-reduced DRI and scrap and powered by renewable electricity.
The German government has announced its intention to support the construction of the plant with 55 million euros, which corresponds to half of the required total investment of 110 million euros. The next step is for the European Commission to approve the German government's intention to provide funding before construction of the new plant can begin. Production is scheduled to start in 2025.
DRI is currently produced using natural gas to reduce iron ore. In a transition phase, the reduction of iron ore with hydrogen is to be demonstrated first, with the hydrogen coming from the residual gas separation of the Hamburg plant. As soon as it is available in sufficient quantities and at an affordable price, green hydrogen - produced from the electrolysis of water using renewable energies - will be used. By 2030, ArcelorMittal plans to produce more than one million tons of carbon-neutral steel per year at the Hamburg plant alone, saving around 800,000 tons of CO2 emissions annually.
The plant is an important part of ArcelorMittal Germany's Steel4Future strategy, which envisages the conversion of its four German plants - in Hamburg, Bremen, Duisburg and Eisenhüttenstadt - to emission-free steel production in the coming years.
Dr. Uwe Braun, CEO ArcelorMittal Hamburg: "With the planned plant, we will be able to produce 100,000 tons of DRI for steel production using hydrogen for the first time - as early as 2025. Our project thus contributes to the goal of greenhouse gas reduction and a low-carbon economy. The technology is directly transferable and shows how other steelworks in our Group - for example in Bremen and Eisenhüttenstadt - can switch to climate-neutral steel production. However, one thing is clear: the production of low-carbon or carbon-free steel is significantly more expensive than traditional steel production. With these challenges, we continue to rely on the support of politicians to create the right framework conditions. The German government's intention to provide funding is helping our project, for which we are very grateful. Now we need the approval of the European Commission so that words can be followed by deeds.
Svenja Schulze, Federal Minister for the Environment: "Ever since mankind has been producing steel, it has needed coal to do so. We are helping to ensure that this will be possible in future with hydrogen from wind and solar power. The conversion of the steel industry is a huge challenge. The German government will not leave the steel industry alone in this transformation. My ministry is offering concrete support for investments in climate protection through the decarbonization funding programme. For the industry, our ambitious climate targets are both a challenge and an opportunity. If companies invest now in greenhouse gas-neutral processes and products such as green steel, they will be able to survive on the market in the future and jobs will be secure. The prerequisite for all this is the expansion of renewable energies. Anyone who says yes to steel production with a future must also say yes to the courageous expansion of wind and solar energy."
Michael Westhagemann, Senator for Economics and Innovation in Hamburg: "The decarbonization of industry, especially the steel industry, is a socio-political task of the century. The aim is to achieve our climate protection targets within the set deadlines without jeopardizing Germany as an industrial and technology location. Thanks to the commitment of the Federal Ministry for the Environment, we here in Hamburg are a good step closer to achieving this goal. We would therefore like to thank the Federal Environment Minister and her office for their far-sighted support."
Jens Kerstan, Senator for the Environment, Climate, Energy and Agriculture in Hamburg: "Those who pursue climate protection are investing in the future, investing in the location and securing jobs. By switching to low-CO2 and, in the long term, climate-neutral steel production, ArcelorMittal is seizing the opportunity to become a pioneer of innovative climate protection technology. The production of green steel is a special challenge and we have closely supported the H2H project from the very beginning as the environmental authority. I am delighted that Hamburg is further expanding its pioneering role in the decarbonization of industry with this project. We need innovative strategies like this to achieve our climate targets."
