ArcelorMittal Spain is leading the way in decarbonizing steel production!

The European Commission has approved a Spanish initiative of 460 million euros to support ArcelorMittal Spain in reducing carbon dioxide emissions from steel production.

According to the European Commission, the measure contributes to the achievement of the objectives of the EU hydrogen strategy and the European Green Deal while reducing dependence on Russian fossil fuels and strengthening the green transition in accordance with the REpowerEU plan.

The Spanish government submitted the measure to the Commission for approval and announced that the funds would be used to decarbonize ArcelorMittal’s steel production in Gijón, where the company has two blast furnaces that produce liquid hot metal from a mixture of iron ore, coke, and limestone.

The direct subsidy supports the establishment of a direct reduction iron plant based on renewable hydrogen. Along with the new electric arc furnace, the factory will replace the existing blast furnace. The natural gas used in the gas mixture is gradually phased out of the steel manufacturing processes.

Ultimately, the plant will be powered by renewable hydrogen and syngas produced from waste and metallurgical gases. 
The plant is expected to start operating by the end of 2025 and to produce 2.3 million tonnes of low-carbon, direct-reduced iron per year. Once completed, the project is expected to reduce carbon dioxide emissions by 70.9 million tons.

“This measure of 460 million euros will allow Spain to support ArcelorMittal’s operations while also reducing carbon dioxide emissions from its steel production processes,” said Margrethe Vestager, Vice President in charge of competition policy. “

It promotes the greening of a very energy-intensive industry, in line with its commitment to move to a net-zero economy.” The same measure ensures that competition in the single market is not unnecessarily distorted.

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