Decision on ArcelorMittal’s climate investments expected in 2025
Steel giant ArcelorMittal will decide in 2025 on the significant climate investments aimed at greening its steel production processes, according to the CEO of ArcelorMittal Europe.
While the company announced in 2021 its plans to make Ghent the focal point of its “largest climate investment ever in Belgium”, it remains uncertain whether the Belgian facility will still be prioritised.
Engineers at ArcelorMittal have been assessing various European sites, including facilities in France, Germany and Spain, to determine the feasibility of replacing coal-fired blast furnaces with electric furnaces that are potentially integrated with direct reduced iron installations.
“We will have clarity on this in 2025,” CEO Geert Van Poelvoorde said. “Then we will see: is there a business case? And if so, for what and in which country?”
Political support
On Tuesday, the Ghent steel plant hosted European commissioners, Belgian prime minister Alexander De Croo and Flemish minister president Matthias Diependaele. The delegation underlined the importance of sustaining Europe’s steel industry, given its role in employment, the production chain and geopolitical stability.
“The industry must become more sustainable, but competition with cheap imports is unfeasible,” Van Poelvoorde said. Efforts to protect the European market, such as the Carbon Border Adjustment Mechanism, starting in January 2026, are seen as vital to levelling the playing field. However, trade measures currently in place are set to expire by June 2026, adding urgency to the timeline.
European Commissioner Teresa Ribera at ArcelorMittal Belgium, 3 December 2024 © BELGA VIDEO JONAS D'HOLLANDER
ArcelorMittal originally aimed to finalise an investment plan for Ghent by the end of 2023 but postponed the decision, citing the need for further evaluation. Initially budgeted at 1.1 billion euros in 2021, the Ghent project now faces cost estimates exceeding 2 billion euros due to inflation, rising interest rates and other factors.
Union and staff concerns
In November, the socialist trade union ABVV claimed that ArcelorMittal had abandoned its climate plans for Ghent, putting the factory’s future in jeopardy. Van Poelvoorde refuted these claims, reiterating the company’s broader commitment to decarbonising its operations.
“We have a plan to decarbonise all factories. But the decision of what comes first and what comes last is quite complex,” he said. Factors include the lifespan of existing blast furnaces, customer demands for green steel and financial constraints.
While Ghent’s pioneering green project - a proposal to construct two electric furnaces and a DRI installation - remains a possibility, its priority within ArcelorMittal’s portfolio is unclear. The European Commission’s forthcoming guidelines on the steel industry are expected to play a key role in shaping the company’s decisions.
“Leading or not leading? I don't think that plays such a big role,” Van Poelvoorde concluded. “We are going to decarbonise the factories. The order depends on a lot of parameters.”
#FlandersNewsService | A visit by new European Commission vice-presidents Teresa Ribera and Stephane Sejourne to ArcelorMittal in Ghent, 3 December 2024 © BELGA PHOTO KURT DESPLENTER
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