The European Commission has given the green light to financial support of EUR 1.3 billion for ArcelorMittal. The main objective of this financial boost is to promote decarbonization in the firm’s steel production, following a similar precedent set in the past 2023.
Socioeconomic support for ArcelorMittal
This measure stands as a fundamental pillar in advancing towards the ambitious goals outlined in the EU Hydrogen Strategy, the European Green Pact and the Green Pact Industrial Plan. In doing so, it not only contributes to the reduction of dependence on fossil fuels, especially from Russia, but also accelerates the move towards a comprehensive ecological transition, in line with the goals of the REPowerEU Plan.
[post_relacionado]With respect to ArcelorMittal’s steel production ArcelorMittals steel production, the project underpins the modernization of operations at its Bremen and Eisenhüttenstadt plants. At these locations, ArcelorMittal will transition from its current three coal-fired blast furnaces and four basic oxygen furnaces to cleaner technologies. This transition will be manifested in the construction of a direct reduction plant and three new electric arc furnaces.
Restructuring and new measures for greener production
Funding will be channeled primarily toward the replacement of obsolete infrastructure with advanced technologies that promote efficiency and sustainability. The new facilities, which will replace two existing blast furnaces and two oxygen furnaces, will initially operate on natural gas. This will be progressively replaced by renewable , low-carbon hydrogen , in a clear commitment to innovation in the production of green steel.
Finally, the new facilities, with an annual capacity of 3.8 million tons of green steel, are scheduled to start operations in 2026. This project will not only match current steel production through conventional processes, but also provides for a significant reduction in emissions, avoiding the release of more than 70 million tons of CO₂ during its useful life of approximately 16 years.
ArcelorMittal, committed to sustainability, plans to share the knowledge and experience acquired throughout this project with the industrial and academic sector, thus strengthening the collective knowledge on the subject.
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Source: Hydrogen Central
Photo: ArcelorMittal