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Energy Transition of German steel mills

Around the sustainable development of the German economy,
Germany’s Energy Transition has been a hot topic in political and public life.
While the big trend of the energy-saving and emission reduction is bound to
challenge industrial’s development, especially the energy-consuming industrial.
It is also required by the European energy policy and climate policy.

German steel enterprises invest continuously in technology
and equipment to improve energy efficiency, energy conservation and make a
great contribution. And it also opened up a new path, so is worthy of reference
for domestic steel enterprises.

ArcelorMittal¡¯s production site in Germany is one of the
world’s highest energy efficiency of steel production site. Because energy
costs exceed the production process of all other costs, ArcelorMittal has been
trying to minimize the use of energy.

Today, the political decisions which influent the German
energy transformation and European climate policy are: a renewable resource
regulations, energy taxes, energy efficiency guidance and energy price
compensation regulations. These policies and regulations directly affect the
German steel industry. Renewable energy regulation and energy tax policy were
discussed in summer of 2012 and led to increase the cost of € 167 million in
ArcelorMittal Company. Therefore, how to improve energy efficiency in the
German factory becomes very important. Moreover, the environmental investment,
quality of raw materials and high-tech advanced steels also require higher
energy consumption. German energy prices are one of the highest in Europe and
the global. It is estimated that the German steel cost on the energy will increase
€ 0.01 and will cause the entire German steel industry an additional € 170
million in costs. Today, as the European steel overcapacity, steel demand will lower
than in 2009 by 25%.

For these reasons, in order to maintain and further improve
the advantages of its cost and energy efficiency, ArcelorMittal will have continuous
investment to their subordinates in technology and equipment. For example, in
its Bremen Company, has invested in secondary dedusting system. Hamburg
companies of ArcelorMittal spend 15% of direct investment costs for energy
efficiency projects. ArcelorMittal Duisburg – Ruhr Port Company recently
completed an advanced wire rolling plant, investing €95 million. In Eisenh¨¹ttenstadt
region, about 80 small and medium-sized primary processing workshop and finishing
workshop projects are under construction.

Major cities in Germany’s energy transition are mainly
reflected in: Hamburg, improving energy efficiency; Duisburg, improving
combustion technology efficiency; Bremen, enhancing gas utilization;
Eisenh¨¹ttenstadt, reducing the whole process emission.

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