Voestalpine secures EIB loan of EUR 300m for green steel production

The European Investment Bank (EIB) has agreed to grant a loan of EUR 300 million (USD 321.2m) to Austrian technology group Voestalpine (VIE:VOE) to support the research and development (R&D) of green steel production.

The company will use the financing to carry out a four-year R&D programme aimed at optimising manufacturing processes, increasing energy and raw material efficiency, and extending product life.

Voestalpine’s green steel production plan, known as Greentec steel, will be implemented in stages. In a first step, the company aims to cut its carbon dioxide emission by up to 30% from 2027 by partially replacing its current coal-based blast furnaces with electric arc furnaces powered by green electricity. The reduction represents almost 5% of Austria’s annual carbon dioxide emissions.

Overall, Voestalpine seeks to drastically reduce its environmental and carbon footprint by 2030 and to achieve carbon neutrality of its production by 2050.

In line with its strategy, the Austrian group agreed in September 2023 to purchase electricity from a 29.7-MW wind park in the province of Styria, using the power for green steel production.

(EUR 1 = USD 1.071)

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