The decision arrives at a time when German industry is still recovering from the sudden loss of access to Russian gas, which supported its production for decades. It also raises uncertainties over the green hydrogen strategy launched by the previous German government.
The German government had hoped the subsidies would encourage ArcelorMittal to convert its Bremen plant in the north and Eisenhüttenstadt in the east to hydrogen-powered furnaces. However, the company decided not to go ahead with these projects due to high energy costs in Germany and uncertainty over the future energy mix.
“The first electric arc furnaces are being built in countries that can provide competitive and predictable electricity supplies,” ArcelorMittal confirmed in a statement, citing the recent investment in a nuclear-powered electric production plant in France as an example.
Reuters
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