Voestalpine plans to further expand its greentec steel project at its Donawitz plant in Austria, with an additional investment of around EUR 100 mln (USD 115 mln) to increase low-carbon steel production capacity by 2030.
The company is set to commission a new electric arc furnace (EAF) at Donawitz in 2027, combining renewable electricity-based steelmaking with its existing blast furnace operations. The move will enable one blast furnace to be taken offline by 2029.
Subject to the resolution of remaining funding issues, Voestalpine intends to invest a further EUR 100 mln (USD 115 mln) in expanding the EAF facility, raising annual CO2-reduced steel production capacity from around 850,000 tons to up to 1.5 mln tons by 2030.
The expansion will include upgrades to power supply infrastructure, the addition of a third secondary metallurgy line and enhancements to scrap handling and logistics.
According to the company, the next phase would allow Donawitz to fully transition to electrified steel production from 2030, enabling the closure of the site’s remaining two blast furnaces and sinter plant. Voestalpine said CO2 emissions at Donawitz would be cut by more than 90pct compared with 2019 levels.
Construction of the new EAF remains on schedule and within budget, the company said. Key milestones in 2026 include the installation of core equipment and the commissioning of power supply and scrap handling systems.
The Donawitz project is part of Voestalpine’s greentec steel program, Austria’s largest climate protection initiative. The first phase, backed by investments of around EUR 1.5 bln (USD 1.7 bln), is expected to reduce the group’s CO2 emissions by up to 30pct by 2029 compared with 2019 levels.
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