ArcelorMittal has confirmed the construction of a 2-mln-ton electric arc furnace (EAF) at its Dunkirk steelworks in France, marking a major step in the group’s decarbonization strategy. The EUR 1.3 bln (USD 1.54 bln) project is scheduled to start operations in 2029 and will cut CO2 emissions by around two-thirds compared with traditional blast furnace production, based on a feed mix of scrap, HBI/DRI and hot metal.
The investment will be supported by France’s Energy Efficiency Certificates (CEE) scheme, which will cover around 50pct of the project cost. ArcelorMittal said the decision was underpinned by several recent developments, including progress by the European Commission on trade defence measures such as reforms to the Tariff Rate Quota (TRQ) system and the Carbon Border Adjustment Mechanism (CBAM), as well as the signing of a long-term low-carbon electricity supply agreement with EDF.
The company said these measures are expected to improve market conditions and energy cost visibility, providing the confidence needed to proceed with the Dunkirk investment.
Separately, ArcelorMittal is also commissioning a new electrical steel production unit at its nearby Mardyck plant. The EUR 500 mln (USD 593 mln) facility, the group’s largest European investment in a decade excluding decarbonization projects, will expand ArcelorMittal’s product offering to support growing demand from the automotive and industrial electrification sectors.
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