European aid for ArcelorMittal and ThyssenKrupp, decarbonized steelmakers

Germany and France receive the green light from the European Commission to grant €2 billion and €850 million in public aid respectively to ThyssenKrupp and ArcelorMittal, to support their projects to decarbonize steel production using hydrogen. These investments will significantly reduce the steel mills' CO2 emissions, helping to meet Europe's climate objectives.

Share:

Subscribe for unlimited access to all the latest energy sector news.

Over 150 multisector articles and analyses every week.

For less than €3/week*

*For an annual commitment

*Engagement annuel à seulement 99 € (au lieu de 149 €), offre valable jusqu'au 30/07/2025 minuit.

On Thursday, the European Commission authorized Berlin and Paris to grant €2 billion and €850 million respectively in public aid to steelmakers Thyssenkrupp and ArcelorMittal to finance projects to decarbonize their production using hydrogen. Decarbonized steel mills: Aid from Germany and France for ThyssenKrupp and ArcelorMittal The institution has “authorized…

On Thursday, the European Commission authorized Berlin and Paris to grant €2 billion and €850 million respectively in public aid to steelmakers Thyssenkrupp and ArcelorMittal to finance projects to decarbonize their production using hydrogen.

Decarbonized steel mills: Aid from Germany and France for ThyssenKrupp and ArcelorMittal

The institution has “authorized the direct subsidy of 550 million euros and the (…) conditional payment of up to 1.45 billion euros granted by Germany to help ThyssenKrupp”, and “a French measure of 850 million euros for ArcelorMittal France”, according to a press release.

These aid packages aim to “decarbonize steel production” using “hydrogen”, at ArcelorMittal’s Dunkirk site in France (north), and Thyssenkrupp’s Duisburg steelworks in Germany (west), among the largest of their kind in Europe. In Dunkirk, ArcelorMittal’s project is expected to avoid the release of around 70 million tonnes of carbon dioxide over the project’s 15-year lifecycle, according to the Commission.

Thyssenkrupp’s decarbonization of the Duisburg site, meanwhile, will prevent the emission of 3.5 million tonnes of CO2 per year, making “an important contribution to achieving climate targets in Germany and Europe”, according to the group.

Rescuing the Duisburg plant: Germany grants crucial aid for conversion to green steel

Without this aid, the Duisburg site, which employs several thousand people, would be in danger, warned the group, which said it did not have sufficient financial resources to carry out this transformation alone. In mid-June, German Economics Minister Robert Habeck paid a visit to the plant’s employees, to whom he promised that “green steel made in Germany is possible”.

By the end of 2022, the Commission had given Germany the green light for a €1 billion subsidy to the German Salzgitter group for a project to decarbonize its steel production in the country. Green hydrogen, which can be used to store renewable electricity, is the preferred option for decarbonizing the polluting steel industry, which must become carbon neutral by 2030, according to EU targets.

The Commission has therefore dedicated an important project of common European interest (IPCEI) to this sector, enabling certain European rules on state aid to be waived. However, the time taken for authorization is irritating companies. Last November, ArcelorMittal called on Brussels to give the green light “more quickly”.

Despite declining revenues, Next Hydrogen maintains operational continuity in Q2 2025 through new private and institutional financing.
Transition Industries assigns Bonatti to build core infrastructure for Pacifico Mexinol, a strategic methanol complex in Mexico poised to become a major global player.
GeoPura has acquired key assets from Green Hydrogen Systems and opened a subsidiary in Denmark to support its expansion in hydrogen electrolyser production and maintenance.
BP and Fortescue withdrawals reveal gap between promises and economic reality in the sector, despite 22.7 billion Australian dollars in government incentives.
Endua, an Australian technology company, has received $4.88mn in public funding to strengthen its capacity to produce modular hydrogen electrolysers, supporting the expansion of local supply chains and industrial development within the hydrogen sector.
HydrogenXT secures a $900mn agreement with Kell Kapital Partners Limited to develop the first ten local zero-carbon blue hydrogen plants along key logistics corridors in the United States.
Elogen completes delivery of a 2.5 MW proton exchange membrane electrolyser for the Baseload Power Hub, linked to the Hollandse Kust Noord offshore wind farm and operated by CrossWind joint venture.
Fotowatio Renewable Ventures joins forces with Envision Energy for the H2 Cumbuco project, aiming for a 500MW green ammonia plant targeting Brazilian, European, and Asian markets.
Element 2 strengthens its partnership with HRS to install a mobile hydrogen station in Glasgow, as part of its expansion strategy for its refuelling network in the United Kingdom and Ireland.
Global hydrogen development, supported by more than 1,500 ongoing projects and significant investments, is driving strong demand for insurance coverage, with potential estimated at over USD3bn in annual premiums by 2030.
ArcelorMittal Brazil begins a collaboration with Utility Global to develop a clean hydrogen project using the patented H2Gen system, aimed at producing up to 3 tons per day at the Juiz de Fora plant.
ENERTRAG announces the acquisition of a plot in Prenzlau to install a 130 megawatt green hydrogen production unit, with a planned investment of €300 mn, thereby supporting the regional economy and local industrial sector.
H2APEX Group SCA has completed a EUR30mn ($32.5mn) capital increase to finance the acquisition of HH2E Werk Lubmin GmbH and support the development of its hydrogen project in Germany. —
Next Hydrogen launches the largest onsite clean hydrogen production and distribution station in Ontario, capable of supplying up to 650 kg per day for powering fuel cell forklifts.
A 5,500-horsepower harbour vessel was bunkered with green ammonia at the Dalian terminal, marking the creation of a full value chain for this fuel and a technical milestone for the maritime sector.
Air Liquide begins construction of the ELYgator electrolyser in Rotterdam, a 200 MW project, supported by the Dutch government and an investment exceeding €500 mn.
A pilot project in Germany aims to produce green hydrogen at sea directly from untreated seawater on offshore wind farms, using marine bacteria and robust materials.
BP withdraws from the Australian Renewable Energy Hub, a major renewable hydrogen and ammonia project in the Pilbara region, marking a new stage for energy investments in Australia.
Next Hydrogen raises CAD1.5mn from its management and a commercial lender to strengthen its cash flow and retain teams, while maintaining its review of financial and strategic solutions.
The first European citizen funding campaign dedicated to green hydrogen enabled Lhyfe to collect €2.5mn from nearly 1,200 investors, strengthening the development of new sites in France and Germany.
Consent Preferences