POLITICS & INSTITUTIONS - ECONOMY

Steelmaking

One billion euros for carbon-free steel



ArcelorMittal says it will reduce its carbon emissions in Spain by 50% over the next five years Photo: Shutterstock

ArcelorMittal says it will reduce its carbon emissions in Spain by 50% over the next five years Photo: Shutterstock

ArcelorMittal and the Spanish government have signed a memorandum of understanding for a €1 bn investment to produce zero-carbon steel.

By 2025, the steel giant aims to produce 1.6 million tonnes of steel from its steel plant in Sestao, Spain (250 km from Gijon), with the distinction of being the first large-scale steel plant to achieve zero carbon emissions.

Hydrogen at the heart of the project

To achieve this goal, ArcelorMittal and the Spanish government have signed a memorandum of understanding for an investment of €1 bn. This investment will enable the steelmaker to accelerate its transition to a low-carbon steel industry. This strategy will mainly revolve around two tools: a direct reduction iron unit with green hydrogen (a first in Spain) and a hybrid electric arc furnace. Both facilities will be operational within four years.

ArcelorMittal says it expects significant support from the Spanish government to cover 50% of the total cost of this investment.

In the meantime, the supply of and access to green hydrogen will have to be consolidated. In this respect, ArcelorMittal stressed “the importance of the support of national and regional governments in this project in accessing green hydrogen supplied by a consortium of companies that, working together, can construct the infrastructure necessary to produce hydrogen in the Iberian peninsula with solar energy electrolysis and transport it via pipeline. The initiative involves the construction of several large-scale solar farms, with hydrogen produced in situ and with the corresponding impact in terms of employment.”

This article was originally published on paperjam.lu. It has been translated and edited for Delano.