The Institute for Energy Economics and Financial Analysis (IEEFA) has stated that Luxembourg-based ArcelorMittal’s plans for more coal-based steelmaking in India contrasts markedly with its developments in Europe and Canada, where the company is planning a transition away from blast furnaces to direct reduced iron (DRI)-based steelmaking using green hydrogen.
In October 2022, ArcelorMittal broke ground on its $1.3 billion transition to DRI-based steelmaking in Canada, and it has similar plans in Spain, France, Belgium and Germany.
The IEEFA stated that, with no major breakthrough in carbon capture utilization and storage for coal-based steelmaking on the horizon, investors should be asking questions that challenge ArcelorMittal about its Indian expansion, the technology choices being made, and how that aligns with the company’s 2050 net zero emissions target.
ArcelorMittal Nippon Steel India (AM/NS India) has begun construction of two new blast furnaces at Hazira, is planning a further expansion of annual capacity to 20 million mt as well as new integrated steel plants at Kendrapara (24 million mt per year) and Paradip (6 million mt per year) in the state of Odisha.