ArcelorMittal will prioritise electric arc furnaces (EAFs) and incremental emissions reductions over large-scale decarbonisation investments for now, including hydrogen direct reduced iron (DRI), due to slow adoption.
Revealed in its Q4 2024 results, the steel giant said it will “continue to optimise its decarbonisation pathway to ensure competitiveness and an appropriate return on investment,” but large-scale decarbonisation projects are “advancing at a slower pace than originally anticipated.”
The Luxembourg-based company attributed this to “insufficient policy [and] market developments.” It added, “Current investments are focused on the new EAF ag Gijón (Spain) and the EAF expansion at Sestao (Spain) which are intended to further expand the company’s offering of XCarb low-carbon emissions steel.”
ArcelorMittal is investing only $0.3-4bn in decarbonisation projects in 2025, signalling a slower transition to hydrogen-based steelmaking due to aforementioned policy and market challenges.
EAFs will now account for 25% of its global steel production, up from 19% in 2018. The strategic shift follows ArcelorMittal’s decision last November to delay final investment decisions (FIDs) on decarbonisation projects.
Read more: ArcelorMittal freezes green hydrogen DRI projects, blaming slow policy progress
The company had plans to commission hydrogen DRI sites in France and Spain this year, with scheduled DRI installations at plants in Belgium and Germany for 2026.
Furthermore, already €3.5bn ($3.6bn) in subsidies had been secured to support the plans.
Overall, ArcelorMittal’s achieved a 2024 EBITDA of $7.1bn ($130 per tonne) in Q4 2024. Additionally, its net debt stands at $5.1bn, with $12bn in liquidity.
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