Green Steel, Green City: Can Bremen Still Achieve its Climate Goals without Arcelor Mittal?
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After Arcelor Mittal abandoned plans to turn the Bremen steelworks into a climate-neutral production facility sans coal, the question looms: can Bremen still reach its climate goals? The investment plans were scrapped due to unfavorable market conditions and the economic unviability of CO2-reduced steel production.
Climate expert, Claudia Kemfert, expresses concerns about Bremen's ability to meet its climate objectives following this decision. A prominent figure in Germany, Kemfert leads the Energy, Transport, and Environment department at the German Institute for Economic Research (DIW) in Berlin. In an interview with our site, she doubts that market conditions are entirely to blame for Arcelor Mittal's decision.
Klara, just how serious is Germany about climate protection if poor political frameworks supposedly drive companies like Arcelor Mittal to snub green electricity projects?
Germany is undoubtedly dedicated to climate protection. As part of the Paris Agreement, we've pledged to become climate neutral by 2045 or sooner. However, the framework conditions must be set to support industrial transformation as well. It's concerning that a company has made this decision about the project, given Germany's need for green steel production.
Can you fathom the company's rationale?
To be honest, I can't quite grasp it. Arcelor Mittal remains active in Hamburg and Duisburg with similar framework conditions. The company's actions seem a bit unusual, especially considering the favorable conditions in Bremen, with green hydrogen and expanding offshore wind energy across North Germany. In Hamburg, the plan's success is evident. Perhaps the company aims to focus more on Hamburg, abandoning multiple locations. That's my take on it.
Does the political influence in this decision seem minor to you?
The political framework conditions are strong in Bremen, offering comprehensive funding and a good starting point. Bremen's steelworks generates its own electricity. The infrastructure for green hydrogen is being established there as well. Given the progress in Hamburg, it's not proceeding as quickly as initially planned, but it's working overall. The company is involved in similar projects in Hamburg. It seems more like a strategic corporate decision for certain locations of this company.
To me, it seems like a strategic decision for Hamburg and Duisburg, at the expense of Bremen.
So, where does Arcelor Mittal stand on Bremen in the end?
We'll see where it goes from here. There was no push to change the framework conditions in any way. Options could be discussed—for example, higher electricity prices—if that was truly the issue. But subsidies have already been provided, so it's unlikely. I suspect this is a strategic corporate decision.
Can climate protection and economic growth in the industry truly coexist?
Climate protection and economic growth can indeed go hand in hand in the industry. Progress can be substantial, as demonstrated by various green hydrogen production examples in Germany and thriving industrial sectors. The automotive industry still lags behind but is shifting towards electromobility. Smart climate protection in industry fosters innovation and job creation, particularly in future-proof roles.
The steelworks sustains about half of Bremen's CO2 emissions. What does this decision mean for Bremen's climate goals?
Without the transformation of the steel industry, Bremen will struggle to meet its climate targets. The likely outcomes are either green steel production won't happen there or no steel production at all. Other options must be pursued. This is unfortunate because Bremen would have been an excellent pilot project for green hydrogen and steel production.
Now, what can Bremen do to achieve its climate goals?
Bremen's ability to meet its climate goals without the steel industry's transformation will be challenging. Alternative routes could include decarbonizing port operations, expanding renewable energy deployment, increasing industrial energy efficiency, exploring alternative low-carbon steelmaking technologies, advocating for supportive policies, and industrial diversification away from carbon-intensive sectors.
This interview was conducted by Lea Reinhard for our site. Written and edited by Robert Otto-Moog.
- As Bremen's steelworks accounts for approximately half of its CO2 emissions, the decision by Arcelor Mittal to forgo climate-neutral steel production could hinder Bremen's ability to achieve its climate goals.
- In light of the lack of progress in green steel production in Bremen, efforts can be made to decarbonize port operations, expand renewable energy deployment, increase industrial energy efficiency, explore alternative low-carbon steelmaking technologies, advocate for supportive policies, and diversify industries away from carbon-intensive sectors.
- Claudia Kemfert, a climate expert from the German Institute for Economic Research (DIW), suggests that while Germany is committed to climate protection, the framework conditions must be established to support industrial transformation as well, given the potential impact of companies' decisions on green steel production.
