ArcelorMittal has released its updated forecasts regarding the decarbonization of steel production in light of the expected strengthening of political stability. The sustainability report for the end of 2024 states that the transition to steel production technologies using direct reduced iron (DRI) based on environmentally friendly hydrogen, as well as the implementation of carbon capture, utilization, and storage (CCUS) systems, is unlikely to be economically viable until 2030.
This is reported by Business • Media
As Aditya Mittal, the CEO of the company, noted, the establishment of an appropriate political framework is necessary to reduce high capital and operational costs for the implementation of such technologies.
“Until there is clarity in policy, there is too much uncertainty to predict how quickly we can reduce our emissions over the next five years. This will depend on the development of the regulatory environment, especially in Europe,”
he said.
Company Efforts and Future Forecasts
Mittal added that European leaders are already working on addressing these critical issues and hopes that the Steel and Metals Action Plan will be implemented at a rapid pace. The report emphasizes that ArcelorMittal plans to release updated forecasts for decarbonization when the political environment becomes more stable.
It is worth noting that the company’s absolute emissions in 2024 were nearly 50% lower compared to 2018. During this time, the company invested over $1 billion in decarbonization projects, including capital expenditures for electric arc furnaces in Sestao and Gijón (Spain), carbon capture systems in Ghent (Belgium), and more. Additionally, ArcelorMittal is actively developing renewable energy production and increasing its scrap metal recycling capacities.
In 2024, the share of steel produced in electric arc furnaces accounted for 25% of the company’s total production, compared to 19% in 2018. Over the next five years, the company will focus on diversifying metal supplies, improving energy efficiency, and transforming steelmaking assets through the transition to EAF (electric arc furnaces). In the long term, ArcelorMittal plans to shift to low-emission steel production and implement carbon capture and storage systems. All decarbonization costs will be included in the annual capital investment budget of $4.5–5 billion.
It is noted that in November 2024, ArcelorMittal suspended part of its European decarbonization plan due to rising energy prices, political uncertainty, and low demand. The company’s CFO, Genuino Cristino, noted that while many customers are interested in low-emission steel, their willingness to pay premiums or purchase such products remains limited.