ArcelorMittal Cancels Germany Steel Projects Over High Energy Costs

ArcelorMittal has abandoned its plans to transform two German plants to hydrogen-based steel production due to high energy costs. This move results in the forfeiture of 1.3 billion euros in government funding. The German economy ministry maintains that no funds were yet disbursed, hence no financial recovery is required.

On Friday, Germany's economy ministry expressed disappointment over ArcelorMittal's choice to halt development of two pivotal hydrogen steel projects in the country.

The decision means the company will forgo government assistance amounting to 1.3 billion euros ($1.5 billion). The ministry clarified that since no funding had been disbursed, there is no need for a financial reclamation.

ArcelorMittal cited prohibitive energy costs as the reason for discontinuing plans to convert its German plants to carbon-neutral operations.

(With inputs from agencies.)