Luxembourg-based ArcelorMittal, the world’s largest steelmaker, has announced that the Federal Government of Germany intends to provide €55 million in funding, which is half of the €110 million total capital expenditure required, to support the construction of the country’s first industrial-scale hydrogen-based direct reduced iron (DRI) plant.
The plant will use hydrogen generated by the separation of waste gas from ArcelorMittal’s Hamburg plant to reduce iron ore into DRI. Production at the plant is scheduled to start in 2025.
By 2030, ArcelorMittal plans to produce more than one million mt of zero carbon-emissions steel a year at its Hamburg plant alone, thereby saving around 800,000 mt of carbon emissions annually.