On Thursday 20 July, the European Commission announced that it had authorised a French aid scheme worth €850 million to help ArcelorMittal France reduce the carbon footprint of steel production at its site in Dunkirk (France).
At Dunkirk, ArcelorMittal operates three blast furnaces producing cast iron and three oxygen furnaces converting cast iron into cast steel.
The aid will enable the construction of a direct reduction plant and two electric arc furnaces, which, once operational, will replace two of the three existing blast furnaces and two of the three oxygen converters.
The direct reduction plant is initially expected to use natural gas, but in the long term steel production is expected to use only hydrogen, biogas and renewable or low-emission electricity.
The aid will take the form of a direct grant paid in four instalments over the construction period of the facility, which is expected to take place between 2023 and 2026. The new facility is scheduled to come on stream in 2026.
The Commission estimates that the project should avoid the release of around 70 million tonnes of carbon dioxide over the 15-year life of the project.
In addition, ArcelorMittal is committed to sharing the knowledge gained from the project with the research and industrial sectors. (Original version in French by Émilie Vanderhulst)