To encourage steel companies to transition toward climate-friendly production, Green Party politician Michael Kellner has called for the federal government to tie its investments to the use of low-CO2 steel.
Following ArcelorMittal's withdrawal from its climate-friendly steel transformation project, the state must respond, said Kellner, the Greens' spokesperson for energy policy, to Reuters on Friday. "The federal government can do two things: First, the industrial electricity price must finally be lowered. Second, given the massive investments in infrastructure, the government should stipulate that only low-CO2 steel may be used," Kellner stated. SPD economic policy spokesperson Armand Zorn echoed this demand, insisting the state should set conditions for its multi-billion euro investments. "For example, we should define a quota for green steel in rail construction to ensure steady demand," Zorn said.
This would provide investment security for companies transitioning to climate-friendly production, explained Kellner, who previously served as Parliamentary State Secretary in the Economics Ministry. Steel producers Salzgitter and Saarstahl are continuing their conversion to green production. Therefore, ArcelorMittal's withdrawal is an "exceptional case." The company had secured subsidy commitments worldwide and has now decided against its German locations, which poses a problem for workers in Bremen and Eisenhüttenstadt.
Kellner criticized new Economics Minister Katherina Reiche (CDU) for creating fresh uncertainty among companies about whether sufficient hydrogen will actually be available for climate-friendly production in the future. "If she does not mandate a fuel switch to hydrogen for new gas-fired power plants, many anchor customers will be lost," warned the Green Party politician. The world's second-largest steel group, headquartered in Luxembourg, decided on Thursday to abandon the conversion of its German sites to low-CO2 production, despite the promise of billions in subsidies.
(Reporting by Andreas Rinke, Christian Krämer; edited by Jörn Poltz. For inquiries, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and economics) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)
