The government’s share of the funding is half of the capital required to execute the project, ArcelorMittal said..
 
Initially the plant will use hydrogen to reduce iron ore that is generated from waste gas separation, but once a sufficient volume of hydrogen is available at an affordable price, green hydrogen will be utilized.
 
“With the intended plant, for the first time we will be able to produce 100,000 tonnes of DRI for steel production using hydrogen — as early as 2025. Our project thus contributes to the goal of greenhouse gas reduction and a low-carbon economy. The technology is also directly transferrable and shows how other steel works in our group — like Bremen and Eisenhüttenstadt — can convert to zero-carbon-emissions steel production processes,” Uwe Braun, chief executive of ArcelorMittal Hamburg, said. “But one thing is clear — the production of low- or zero-carbon-emissions steel is significantly more expensive than traditional steelmaking methods. When it comes to these challenges, we continue to rely on political support to create the appropriate framework conditions. The German Government's intention to provide funding helps our project and we are very grateful for this. Now we need approval from the European Commission so that words can be followed up with action.”
 
Svenja Schulze, Germany’s Environment Minister, said, “Ever since mankind started producing steel, it has needed coal to do so. We are helping to ensure that this will be possible in the future with hydrogen from wind and solar power. The restructuring of the steel industry is a huge challenge. The German Government will not leave the steel industry alone in the transformation. My ministry is offering concrete support for investment in climate protection through the decarbonization funding program. For 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 spirited expansion of wind and solar energy.”
 
Production on the new plant is scheduled to start in 2025.
 
Read the full announcement here.