This is a very bad signal sent to the industry and the climate. The steel group ArcelorMittal has decided to delay its massive decarbonization project at its Dunkirk plant (north). The information, revealed on Saturday, November 23 by the new factoryThis was confirmed by the Minister of Industry, Marc Ferracci, who considers that this is a consequence of the current crisis in steel production in Europe. “with a level of demand and prices reaching a historical minimum”. A decision that questions the strategy of the global steel giant and, at the same time, confirmed on Monday, November 25, the closure of its service centers in Reims (Marne) and Denain (North), which employ 112 and 24 people respectively.
The decline of ArcelorMittal in Dunkirk is symbolic because its site, which houses the highest furnace in Europe, is the showcase of the French industry decarbonization policy implemented by the government. Its 450 hectares are among the 50 industrial estates that emit the most greenhouse gases (GHG), according to its 32 ownership groups: cement, metallurgical, oil, etc. – signed with the State, in November 2023, “ecological transition contracts”. Through these non-binding roadmaps, TotalEnergies, Lafarge-Holcim, Solvay, ArcelorMittal and others committed a year ago to reduce their GHG emissions by at least 45% by 2030 compared to 2015, and to achieve carbon neutrality. carbon in 2050.
These 50 plants alone represent 12% of total GHG emissions in France, including 3% from ArcelorMittal’s Dunkirk steelworks. Therefore, its decarbonization project is crucial: it intends to build two electric furnaces to replace the current coal furnaces, as well as a direct iron reduction unit that would transform the mineral with decarbonized hydrogen. The total amount of the investments was estimated by the multinational at 1,800 million euros, with a promised state aid of 850 million euros from the funds of the France 2030 plan. Despite these credits, ArcelorMittal does not consider it profitable at the moment to undertake this project.
Long and expensive
Could this slowdown slow down other manufacturers that have signed transition contracts? Although they have begun to define their strategy to decarbonize, many still expect a strong financial commitment from the State to support them in these long and costly investments. “Our roadmap includes forty different decarbonization projects, in different stages of implementation”explains Maud Tarnot, director responsible for CSR (corporate social responsibility) at Lafarge-Holcim, who highlights that “The safeguarding of public credits and their long-term legibility are essential for manufacturers”.
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