The European Commission announced that it has granted approval for EUR 280 mln (USD 307 mln) in funding, in accordance with EU State aid regulations, to assist ArcelorMittal Belgium in its efforts to partially reduce carbon emissions in its steel production processes.
The approval follows Belgium’s submission of a EUR 280 mln (USD 307 mln) proposal to the European Commission, outlining support for ArcelorMittal’s project focused on reducing carbon emissions in its steel production operations in Ghent. Currently, the company operates two blast furnaces in Ghent, which produce liquid hot metal through a combination of iron ore, coke, and limestone.
The funding will be utilized to construct a direct reduction iron plant, which, along with a new electric arc furnace, will replace one of the existing blast furnaces. The plant’s energy mix will gradually transition away from natural gas, which is currently used, and instead incorporate renewable hydrogen. Low-carbon hydrogen will be utilized as a supplement only when there is an insufficient supply of renewable hydrogen available.
The plant is projected to commence operations in 2026 and is expected to produce 2.3 mln tons of low-carbon direct reduced iron annually.
Upon completion, the project is anticipated to prevent the release of over 50 mln tons of carbon dioxide. Additionally, ArcelorMittal has committed to sharing the technical knowledge acquired through this project.
1 USD / 0.91 EUR
