The investment plan for Asturias steel mills is just one of four major decarbonisation projects under the General Directorate’s review for which ArcelorMittal has requested public support under the European CEAG program (state aid for climate, environmental protection and energy). He stated that the European Union (EU) is ready for Competition and is at the table of the European Commission for the final decision, which is expected to take place in a short time.
Three other projects of the multinational are located at the ArcelorMittal factories in Bremen (Germany), Dunkerque (France) and Ghent (Belgium).. These are planned to replace direct iron ore reduction (DRI) furnaces and hybrid electric furnaces to replace traditional steel mills, such as the one designed for Gijón. In addition, ArcelorMittal has processed further applications for the plants in Fos-sur-Mer (France) and Eisenhüttenstadt (Germany).
In the most advanced analysis and reporting process of the European Competition authorities, there were four projects: one in Asturias and two German and one French, supported by other steel companies. Of these, only the project in Asturias and one of the two German projects was transferred to the European Commission for settlement by the Competition.
If this executive body does not delay in doing so and more files already reviewed by the Contest pile up soon, everything shows that he will benefit from the implementation of the Asturias plan. This is important for three reasons: because the deadlines that the Gijón plant moves to undertake its conversion are very fair, because the end of life of the blast furnace “A” (installation to be replaced by the new DRI system) is 2024; because there is a fear that the accumulation of steel decarbonization projects through the direct reduction of iron mining will saturate the engineering firms specializing in this new technology and because the demand from the USA with the support of the Inflation Reduction Act monopolize all kinds of equipment connected to green hydrogen, the renewable energy that has been called the star in the new technological era of the steel industry. .
Therefore, the public assistance requested by ArcelorMittal and recently reported positively by the Competition is entirely directed towards the future DRI furnace, while action to convert the Gijón steelworks into a hybrid electric furnace (with pre-reduced iron and scrap) other types of public It prefers aid, part of the company has already started to receive 7.5m euros between direct subsidies and loans granted in November to address environmental improvements. electric steel mill of the future and others from IDAE (Spanish Institute for Energy Diversification and Savings).
ArcelorMittal has requested public assistance of up to 500 million for DRI in exchange for an official investment of 1,000 million, through the PERTE (Economic Recovery and Transformation Strategic Project) for Decarbonisation, supported by the Spanish Government. However, it is considered certain that the total public aid will exceed this figure (Industry Minister Reyes Maroto had already opened this possibility during his visit to Fitur days ago) and the investment could be between 1,400 and 1,500 million. In the documents, officials came to the reserve up to 1,800 million.
The company did not specify the final scope of the investment and is limited to keeping the official figures of 1,000 million committed in July 2021 by the multinational’s president and CEO for now. Lakshmi and Aditya Mittaland Pedro Sánchez, President of the Spanish Government.
But then the signing of a protocol between Aditya Mittal and Industry Minister Reyes Maroto in Davos in 2022 opened up the possibility of including a new hybrid electric oven at the Avilés plant.
33 million investment
ArcelorMittal announced yesterday that it has invested $36 million (EUR 33.12 million) in Boston Metal, a company specializing in the decarbonization of primary steel production using a patented molten oxide electrolysis process. This is ArcelorMittal’s largest initial investment to date through the XCarb® Innovation Fund. Created in March 2021, the fund aims to invest in the best technologies that offer the potential to make a significant contribution to the decarbonisation of the steel industry.
Source: Informacion
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