ArcelorMittal announces delay of European decarbonisation plans, including in Ghent
Steelmaker ArcelorMittal is postponing its decision on the greening of its European steel plants, including its site in Ghent. The company cites unfavourable policies, high energy prices and competition from outside the EU as reasons for the delay.
Since 2021, engineers have been studying the prodcution of green steel at ArcelorMittal's European plants. Instead of using coal, steel would be produced in furnaces powered by hydrogen. Such an investment in its plant in Ghent would reduce Belgium's industrial CO2 emissions by several per cent.
ArcelorMittal's management was supposed to place the order by the end of this year. But the steel giant is not allocating the billions of euros needed for the foreseeable future, it announced on Tuesday. This is despite an investment of 600 million euros by Flanders to convince the company to go through with the plans.
Economically unviable
In addition to Ghent, similar projects would be launched in France and Germany. But ArcelorMittal says it sees no economically viable way of greening steel production in Europe, at least for now. The company cited unfavourable policy developments, the energy market and technological advances as reasons for the decision.
In the short term, the steel giant is looking to the European Commission to intervene. The European steel industry has been hit hard by imports from countries that place less emphasis on the carbon footprint of production, and the war in Ukraine has caused energy prices to spike and wages to rise due to inflation.
"I remain convinced that we can still achieve our net-zero target by 2050, but the way we achieve it may be different from what was announced"
In the long term, ArcelorMittal still aims to become a carbon-neutral company, but it may no longer prioritise investment in Europe. "I remain convinced that we can still achieve our net-zero target by 2050, but the way we achieve it may be different from what was previously announced," says CEO Aditya Mittal.
ArcelorMittal's Ghent site employs more than 4,500 workers and another 1,100 contractors. It is not clear when a final decision on the plans in Belgium - or the rest of Europe - can or will be made.
"Flanders expects a decisive and clear signal from Europe"
"I can understand Arcelor Mittal in their business logic," said Flemish minister-president Matthias Diependaele. He is also looking to the European Commission for a solution. "The employment of almost 6,000 people in Ghent is of paramount importance. That is why Flanders expects a decisive and clear signal from Europe."
#FlandersNewsService | © BELGA PHOTO DIRK WAEM
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