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Home Steel News High costs hinder German green steel plans
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High costs hinder German green steel plans

26 Jun 2025 14:14 reported by Joy Liu

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ArcelorMittal, the global leading steelmaker, has halted its EUR 2.5 billion green steel projects in Bremen and Eisenhüttenstadt, Germany. Despite a pledged EUR 1.3 billion government subsidy, the company said the market outlook was uncertain and economic viability was insufficient. This move reflects the broader challenges facing Germany's steel industry in its transition to climate-neutral production.

Other major steel mills, such as thyssenkrupp Steel and Hüttenwerke Krupp Mannesmann (HKM), are also facing hurdles with hydrogen-based initiatives due to high costs and a lack of green hydrogen supply.

Although green steel processes significantly reduce carbon emissions, their nearly double production cost compared to traditional methods makes widespread adoption difficult. Steelmakers are reluctant to pass these costs to consumers, further discouraging investment.

ArcelorMittal and thyssenkrupp Steel are now exploring electric arc furnaces using renewable energy and recycled steel as an alternative.

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