ArcelorMittal Spain, Spanish subsidiary of Luxembourg-based steelmaker ArcelorMittal, has published its Sustainability Report for 2021.
According to the report, although the year 2022 started with good prospects for the Spanish steel industry, the exorbitant electricity and gas prices as a result of the war between Russia and Ukraine pose a serious threat for the steel industry and its decarbonization.
The high and unstable electricity costs negatively impact the competitiveness of the companies such as ArcelorMittal. The company stated that the shutdown of industrial facilities, including ArcelorMittal’s facilities, is inevitable with electricity prices close to €550/MWh. Therefore, the company is calling on the government of Spain to find ways to bring energy prices in line with prices for other companies in European countries, citing Germany and France where stable energy prices are guaranteed for energy-intensive companies.
ArcelorMittal Spain noted that decarbonization is possible through the development of two technological routes: the use of direct reduced iron and electric arc furnaces. Both routes require the use of electricity from renewable sources and hydrogen. Accordingly, the company stated that they cannot focus efforts on the development of these projects if electricity prices are so high. ArcelorMittal Spain concluded that strategic alliances and governmental commitment to secure energy supply are needed.