ArcelorMittal Eisenhüttenstadt plans to build an electrolysis plant for €5 million

German steelmaker ArcelorMittal Eisenhüttenstadt, a subsidiary of the largest European steel producer ArcelorMittal, has announced plans to build an electrolysis plant and a hydrogen refueling station. Investments in the project will amount to €5.1 million. SteelOrbis reports about it.

The project is planned to be implemented together with the German energy supplier McPhy, which is designed to decarbonize steel production by using hydrogen.

The power of the electrolysis plant will be 2 MW, and the completion of construction of the unit is planned for 2024. The two electrolyzers to be supplied by McPhy will produce hydrogen for direct use in steel production.

ArcelorMittal intends to go green steel production until 2050. The company is actively studying and implementing new projects on the way to decarbonization of its facilities.

According to the CEO of ArcelorMittal Corporation Aditya Mittal, decarbonization of the steel industry in the future may lead to an increase in prices for environmentally friendly steel by approximately 10-20%. Because of this, steel companies that strive for the production of environmentally friendly steel may face the inefficiency of their business models in the future.

As GMK Center reported earlier, European division ArcelorMittal in 2022 decreased steel production by 13.3% y/y – to 31.9 million tons. Sales of steel at the end of the year increased by 9.1% y/y – up to $47.26 billion amid a favorable start to the year.