Belgium – Today, Belgian Prime Minister Alexander De Croo and Federal Energy Minister Tinne Van der Straeten signed a letter of intent with ArcelorMittal Belgium in Ghent. According to the agreement, the Belgian government guarantees the supply of nuclear energy at a favorable price to the company for a period of ten years.
ArcelorMittal Belgium has important plans to become more sustainable. The company wants to reduce its CO2 emissions by 35% from 2018 levels by 2030. By 2050, it wants to be climate neutral. Initially, the company is focusing on improving energy efficiency. It is looking at reusing waste heat, developing renewable energy and process optimization. The second route is based on the circular use of carbon, CCU and CCS.
Billion dollar investment
The third pillar focuses on electrification of steel production. Therefore, access to electricity at a competitive price is particularly important, the company said. The plans involve a billion-dollar investment. The signing of the letter of intent for the long-term supply of nuclear energy at a favorable price to ArcelorMittal Belgium brings these plans closer.
Under the agreement, the company will be able to claim a significant portion of electricity from the Doel 4 and Tihange 3 nuclear power plants until 2035 – after their lifetime extensions.
Grant
Last year, the company completed the pre-FEED (front-end engineering design) phase for its sustainability plans. Currently, the decarbonization transformation project is in the FEED phase. ArcelorMittal expects to complete it in the fall of this year. This study will determine the industrial layout for the project, the implementation schedule, the final budget and confirm the viability of the project. The company will then decide whether to proceed with the plans.
At the same time, ArcelorMittal can count on a generous grant from the French government to green its blast furnaces in Dunkirk. It is therefore not clear whether the company will indeed invest in Ghent. Meanwhile, the Belgian government is taking measures to make conditions attractive for the steel giant. For example, it is allowing a discount of up to 80 percent on high-voltage grid tariffs paid by large industrial consumers. The Flemish government also confirmed increasing loans to the steel company through the joint venture Finocas from 350 to 600 million euros. In addition, it increased the direct subsidy to 120 million euros.
