According to Steel Data, the major steel company ArcelorMittal, despite receiving a €1.3 billion subsidy offer from the German government, has decided to halt its transition project toward green steel production at its plants in Germany. The company had intended to make its Bremen and Eisenhüttenstadt plants carbon-free by 2050, but citing delays in energy infrastructure development, shortages of green hydrogen, and the high cost of alternative technologies, it withdrew from the plan.
The steel industry is one of the largest sources of greenhouse gas emissions in Germany, accounting for around 7% of the country’s total CO₂ emissions. To meet the goal of carbon neutrality by 2045, approximately 55 million tons of CO₂ must be cut from the steel sector alone. The former German government had designed major support programs to replace coal with green hydrogen, but infrastructure and clean energy supply are still far from meeting targets.
The European director of ArcelorMittal has stated that the European steel market is facing unprecedented pressure, including declining demand and rising imports, which have made long-term investments in green projects highly risky.
This development shows that government subsidies alone are not sufficient. Until affordable green energy, adequate infrastructure, and fair trade conditions are in place, the future of green steel — not only in Germany but across Europe — will remain uncertain.
