France – A €850 million plan to assist ArcelorMittal France (‘ArcelorMittal’) in its effort to partially decarbonize its steel production processes has received approval from the European Commission.
The authorized project will help the EU achieve its goals of reducing greenhouse gas emissions and ending reliance on Russian fossil fuels, as well as those of the European Green Deal and the Green Deal Industrial Plan. This enormous project marks a significant turning point in the process of accomplishing the goals specified in the REPowerEU Plan.
In order to support ArcelorMittal’s project in Dunkirk, where the company currently runs three blast furnaces and three basic oxygen furnaces that are essential for producing liquid hot metal and transforming it into liquid steel, France presented the European Commission with the €850 million measure.
The authorized aid will make it easier to build two electric arc furnaces and a direct reduction facility. ArcelorMittal plans to replace two of the existing blast furnaces and two fundamental oxygen furnaces by incorporating these cutting-edge equipment. Natural gas will be phased out gradually as part of the transition away from conventional methods, with the end goal of solely using renewable or low-carbon hydrogen, biogas, and electricity as energy sources.
Reducing carbon footprint
The combined DRP/EAF plant is anticipated to start operating in 2026, and it is anticipated to produce 4 million tonnes of low-carbon liquid steel per year once it does so. The project is expected to reduce carbon dioxide emissions by about 70 million tonnes over a 15-year period.
France chose ArcelorMittal’s initiative from an open call to take part in an Important initiative of Common European Interest (IPCEI) with a hydrogen focus in 2020. This IPCEI is well-suited for evaluation under this framework because it aims to reduce greenhouse gas emissions in energy-intensive businesses and because, as an emissions-reduction project, it adheres to the CEEAG guidelines.
Supporting ArcelorMittal’s innovative initiatives to decarbonize its steel manufacturing processes would help Europe achieve its lofty climate goals and maintain its position as a leader in the fight against climate change.
