European Commission agrees EUR 515 million to fund ArcelorMittal decarbonization of steel production

18/03/2023

The European Commission has approved EUR 515 million in funding to help ArcelorMittal decarbonize its steel production in Spain and Germany. This funding is part of the EU’s hydrogen strategy, which aims to reduce the bloc’s dependence on Russian fossil fuels.

In Spain, EUR 460 million will be used to partially decarbonize the steel production at the Gijon plant in northwest Spain. The transformation of the Gijon plant will include the construction of a renewable hydrogen-based direct reduced iron (DRI) plant. The new facility is expected to be operational by the end of 2025 and will produce 2.3 million tons of low-carbon DRI annually, thus avoiding CO2 emissions of 70.9 million tons.

In Germany, the remaining EUR 55 million will be used to build a DRI demonstration plant using 100% renewable hydrogen. The plant is expected to have an annual capacity of 100,000 tons and start operation in 2026. ArcelorMittal Hamburg expects to avoid emitting more than 700,000 tons of CO2 annually once the plant is operational.

This funding is a significant step forward for ArcelorMittal’s decarbonization efforts. The company has ambitious plans to reduce its CO2 emissions by 30% by 2030 and become carbon neutral by 2050. The funding from the European Commission will help ArcelorMittal to achieve these goals and make a significant contribution to the EU’s climate targets.

CBAM