The transition to direct iron reduction (DRI) steel production technologies based on environmentally friendly hydrogen, carbon capture, utilization and storage (CCUS) is unlikely to be economically feasible before 2030. This is stated in the company's sustainability report for 2024.
As noted by Aditya Mittal, CEO of ArcelorMittal, in order for this to happen, a policy is needed to overcome the high capital and operating costs associated with the relevant processes.
Aditya Mittal added that European leaders have taken the time to address these important issues. Therefore, he hopes that the steel and metals action plan will be translated into Swift Action.
According to the report, ArcelorMittal intends to publish revised forecasts of decarbonization when the political environment becomes more stable.
It is noted that the absolute emissions of the ArcelorMittal operational perimeter were almost 50% lower last year compared to the 2018 operational perimeter. During this period, the company invested $1 billion in decarbonization projects, including capital expenditures related to electric arc furnaces in Sestao and Gijon (Spain), carbon capture and utilization in Ghent (Belgium), and the like. The company has also invested in renewable energy production and increased its scrap recycling capacity.
The share of ArcelorMittal steel produced in electric arc furnaces accounted for a quarter of the company's global production in 2024, up from 19% in 2018.
Over the next five years, the company's decarbonization efforts will focus on diversifying metal supplies, improving energy efficiency, providing clean energy, and transforming steelmaking assets by continuing the transition to EAF. In the long term, ArcelorMittal plans to switch to low-emission cast iron production and introduce carbon capture and storage.
All capital expenditures related to decarbonization will be retained within the annual capital investment budget of $4.5 billion. 5 billion.
