ArcelorMittal needs cheap power, hydrogen for German steel revamp
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 17 2024
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Source: reuters
- ArcelorMittal's Decarbonization Plans: The steelmaker ArcelorMittal is considering decarbonizing its steel plants in Germany.
- Conditions for Decarbonization: ArcelorMittal requires cheap electricity, sufficient renewable energy, and hydrogen supply to proceed with the decarbonization plans.
- Risk of Production Capacity Leaving: Without competitive energy prices and green energy sources, there is a risk of industrial production capacity relocating.
- Timeline for Decision: The final investment decision on the 2.5 billion euro decarbonization plan is expected by mid-2025.
- Government Subsidies: A significant portion of the decarbonization costs are covered by German government subsidies, similar to other steelmakers like Thyssenkrupp and Salzgitter.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
