EC authorises EUR 850m for ArcelorMittal green steel project

The European Commission (EC) on Thursday gave the green light to the government of France to extend a EUR-850-million (USD 946m) grant to ArcelorMittal SA (AMS:MT) for its partial steel production decarbonisation project in Dunkirk.

The EC said in a statement it found that the measure is necessary and appropriate to promote the production of green steel, and that it has sufficient safeguards to limit undue distortions of competition.

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ArcelorMittal France will use the financing to build a direct reduction (DR) plant and two electric arc furnaces (EAFs) at its site in Dunkirk. The new equipment will substitute two of three existing blast furnaces and two of three basic oxygen furnaces. Initially, the DR plant will use natural gas but it will gradually be phased out of the steel production processes, eventually reaching the point where the facility operates solely using green or low-carbon hydrogen, biogas and electricity.

The approved state aid will be disbursed in four installments during the construction period, which is expected to take place in the period 2023-2026. Upon completion, the combined DRP/EAF installation will have the capability to produce 4 million tonnes of low-carbon liquid steel per year.

(EUR 1.0 = USD 1.113)