On Thursday 22 June, the European Commission announced that it had authorised a Belgian measure worth €280 million, including a direct grant and a soft loan, to support ArcelorMittal Belgium in the partial decarbonisation of its steelmaking processes in Ghent.
The measure will support the construction of a pre-reduced iron production unit equipped with a new electric arc furnace, which will replace one of the two blast furnaces producing molten pig iron in Ghent. Ultimately, the plant should be powered mainly by renewable hydrogen.
It is due to start production in 2026, producing 2.3 million tonnes of low-carbon pre-reduced iron annually. Once operational, the project should prevent the emission of more than 50 million tonnes of carbon dioxide.
The Commission examined the measure in particular under Article 107(3)(c) of the Treaty on the Functioning of the EU and the “Guidelines on State aid for climate, environmental protection and energy 2022”.
The project is accompanied by a mechanism for the partial recovery of aid by Belgium should the project generate additional net income. ArcelorMittal has also undertaken to disseminate the technical know-how acquired as part of the project. Finally, the project will be monitored to check progress towards the objectives. (Original version in French by Émilie Vanderhulst)