"It is becoming increasingly clear" that investments in low-emission pig iron production are likely to be cost-effective only after 2030, and that this requires measures aimed at reducing the associated high capital and operating costs, says ArcelorMittal chief executive Officer Aditya Mittal.
What the steel group can achieve by 2030 will "crucially depend" on how the regulatory framework changes this year, especially in Europe. The EU Steel and Metals Action Plan "demonstrates that Europe understands the challenges facing the industry and the gravity of the situation and is ready to address the structural challenges necessary to support the future of steel production on the continent", - ArcelorMittal said in its sustainability report for 2024.
The CEO hopes that the plan "will be translated into swift action", - he adds in the report, which was reviewed by[b]Callanish[/b].
"Until the policy is clarified"There is simply too much uncertainty at the moment for us to make useful predictions about how quickly we will be able to reduce our emissions in the next five years", - Mittal continues.
The steel mill intends to publish a revised projected decarbonization when the political environment becomes more resilient. In the meantime, the company continues to develop all technologies that help reduce emissions from iron and steel smelting.
Over the next five years, decarbonization efforts will continue to focus on diversifying metal supplies, improving energy efficiency, providing clean energy, and transforming steelmaking assets by continuing the transition to electric arc furnaces.
In the long term, a transition to lower-emission cast iron smelting and an increase in carbon capture and storage is expected.
All capital expenditures related to decarbonization will be limited to an annual capital investment budget of $4.5-5 billion.
"The approach described above should ensure that we can act quickly when we reach a tipping point where the confluence of politics, technology and costs irreversibly change the economics of steel production in favor of low-carbon methods", - Mittal concludes.
