The European Commission has approved EUR 460 million Spanish measure to support ArcelorMittal España in partially decarbonizing its steel production processes citing that the measure will contribute to the achievement of the EU Hydrogen Strategy and the European Green Deal targets, while helping to reduce dependence on Russian fossil fuels and fast forward the green transition in line with the REPowerEU Plan. The aid, which will take the form of a direct grant, will support the construction of a renewable hydrogen-based direct reduced iron plant. Together with a new electric arc furnace, the plant will substitute the current blast furnace. Natural gas, initially used in the gas mix, will be gradually phased out of the steel production processes. Ultimately, the plant will be operated using renewable hydrogen with syngas produced from waste and metallurgical gases. The plant is envisioned to start operating by the end of 2025 and it is expected to produce 2.3 million tonnes of low-carbon direct reduced iron per year. Once completed, the project is expected to avoid the release of 70.9 million tonnes of carbon dioxide. ArcelorMittal has committed to share the technical know-how gained through the project with other European steel producers. Spain had notified to the European Commission EUR 460 million measures to support ArcelorMittal's project aimed to partially decarbonize its steel production in Gijón, where it operates two blast furnaces producing liquid hot metal from a mixture of iron ore, coke and limestone. Spain selected ArcelorMittal's project in the context of an open call in 2021 to form part of an IPCEI on hydrogen technologies and systems. ArcelorMittal's project intends to reduce greenhouse gas emissions in the energy-intensive steel sector. As aid for the reduction of greenhouse gas emissions, including through support of Decarbonisation projects, is one of the main categories of aid allowed by the CEEAG, the measure was best suited for assessment under these guidelines.
The European Commission has approved EUR 460 million Spanish measure to support ArcelorMittal España in partially decarbonizing its steel production processes citing that the measure will contribute to the achievement of the EU Hydrogen Strategy and the European Green Deal targets, while helping to reduce dependence on Russian fossil fuels and fast forward the green transition in line with the REPowerEU Plan. The aid, which will take the form of a direct grant, will support the construction of a renewable hydrogen-based direct reduced iron plant. Together with a new electric arc furnace, the plant will substitute the current blast furnace. Natural gas, initially used in the gas mix, will be gradually phased out of the steel production processes. Ultimately, the plant will be operated using renewable hydrogen with syngas produced from waste and metallurgical gases. The plant is envisioned to start operating by the end of 2025 and it is expected to produce 2.3 million tonnes of low-carbon direct reduced iron per year. Once completed, the project is expected to avoid the release of 70.9 million tonnes of carbon dioxide. ArcelorMittal has committed to share the technical know-how gained through the project with other European steel producers. Spain had notified to the European Commission EUR 460 million measures to support ArcelorMittal's project aimed to partially decarbonize its steel production in Gijón, where it operates two blast furnaces producing liquid hot metal from a mixture of iron ore, coke and limestone. Spain selected ArcelorMittal's project in the context of an open call in 2021 to form part of an IPCEI on hydrogen technologies and systems. ArcelorMittal's project intends to reduce greenhouse gas emissions in the energy-intensive steel sector. As aid for the reduction of greenhouse gas emissions, including through support of Decarbonisation projects, is one of the main categories of aid allowed by the CEEAG, the measure was best suited for assessment under these guidelines.
