Luxembourg-headquartered ArcelorMittal, the world’s leading integrated steel and mining company, has announced that it is receiving a €75 million loan from the European Investment Bank (EIB) to help it scale up breakthrough technology to reduce carbon emissions.
The EIB, with the support of the European Commission, has granted a €75 million loan to ArcelorMittal for the construction of two ground-breaking projects at ArcelorMittal Ghent in Belgium to considerably reduce carbon emissions by converting waste and by-products into valuable new products. The projects aim to help to develop low-carbon steelmaking technologies, in line with the EU’s climate objectives.
The projects include Steelanol, a €165 million industrial-scale demonstration plant that will capture waste gases from the blast furnace and biologically convert them into recycled-carbonethanol, and Torero, a €50 million large-scale demonstration plant to convert waste wood into bio-coal, partially replacing the coal currently injected into the blast furnace. The former is expected to be complete by 2022, with the latter being operational by the end of that same year.
EIB Vice-President Ambroise Fayolle commented: “Even in the current difficult times, Europe keeps its ambitious climate targets and the EIB, the EU climate bank, is committed to continuing to be a key partner. In particular in the steel industry, it means finding new ways to power machines and processes that are essential for reducing carbon emissions”.
Mariya Gabriel, European Commissioner for Innovation, Research, Culture, Education and Youth, added: “This EU backed loan will enable us to demonstrate that European steelmaking plants can be competitive while reducing carbon emissions and help us attain our climate goals. More than this, if we invest in European research, education and innovation we can demonstrate the global leadership that can secure and strengthen these industries and the people and communities they support for future generations”.
For his part, Geert Van Poelvoorde, CEO of ArcelorMittal Europe – Flat Products, said: “To date we have committed more than €250 million to developing and testing technology that will help make steelmaking carbon neutral, leveraging our R&D facilities around the world. These two projects are our first large-scale implementations of new breakthrough solutions, as part of our commitment to reduce carbon emissions and transform steel production. With the EIB and European Commission’s support, we can scale up technologies and transition steel to carbon neutrality, and thereby play a significant role in helping Europe achieve its green ambitions”.
Indeed, ArcelorMittal Europe has committed to reduce CO2 emissions by 30% by 2030, with a further ambition to be carbon neutral by 2050, in line with the EU’s Green Deal and the Paris Agreement.