BERLIN, June 20 (Reuters) - Germany's economy ministry

on Friday expressed regret over ArcelorMittal's decision

not to proceed with two key hydrogen steel projects in Germany,

foregoing government help amounting to 1.3 billion euros ($1.5

billion).

"It is important to note that no money has yet flowed. This

means that no money has to be reclaimed," the ministry said in

an emailed statement.

ArcelorMittal said it had dropped plans to convert two

plants in Germany to carbon-neutral production because the

country's energy costs were too high.

($1 = 0.8687 euros)