A council-backed move channels public backing to ArcelorMittal as part of a broad push to decarbonize. A grant of 450 million euros is earmarked for the Veriña plant in Gijón, with total investment expected to exceed 1,000 million euros—a target the company first outlined in 2021. The final green light rests with ArcelorMittal, whose investment committee will review and approve the detailed plans before moving ahead.
Jose Manuel Arias, president of ArcelorMittal Spain, stated yesterday that the company will evaluate the decision and the accompanying conditions before taking action. Documents must be submitted and the subsidy accepted within three months to advance the project, Arias explained in Avilés. The decarbonization effort aims to expand green steel production capacity while ensuring the investment remains economically viable and sustainable.
To hit these sustainability goals, ArcelorMittal is coordinating closely with the national government. A central question is how to maintain long-term viability amid fluctuating energy prices and what mechanisms will stabilize the project’s parameters. Once these details are clarified, the project can move to the next phase.
The Government and the Principality of Asturias reported that, during a meeting with ArcelorMittal management, work has begun on requesting and accepting the aid. The funds will support the decarbonization of Spain’s integrated steel sector. The intent is to cut emissions and enable a green steel industry that can spur downstream development. The groundwork is in place, and ongoing collaboration will be essential for success. [Citation: Government meeting notes, attributed to regional authorities]
Francisco Blanco emphasized that energy markets remain tense and price swings pose challenges, yet he expressed confidence in collaborating with ArcelorMittal over the three-month period with government assistance to reduce uncertainties and implement the project. The plan holds strategic importance for Asturias and Spain, given its potential impact on automotive and construction industries. ArcelorMittal’s involvement is also expected to bolster hydrogen production and distribution. [Citation: Regional industry briefing]
Enrique Fernandez, the Minister of Industry for the Principality, welcomed the prospect of Asturias becoming among the first regions worldwide to produce green steel using future fuel sources. [Citation: Asturias Ministry of Industry press release]
The initial plan approved in 2021 included 450 million euros in PERTE funds, backed by 3.1 billion and financed through European NextGeneration funds aimed at industrial decarbonization. Public funds will support the transition to a direct reduced iron (DRI) furnace to replace the existing Blast Furnace A in Gijón by late 2025, in line with the original schedule. [Citation: PERTE program summary]
The Veriña blast furnace is one of ArcelorMittal’s facilities that was shut down after a recent fire. The DRI furnace represents one of two major actions to curb CO2 emissions at the Veriña site, aligning with European Union climate goals for gradual CO2 allowances through 2034 and the eventual removal of allowances by 2026. [Citation: EU climate policy timeline]
Among the two facilities announced for the Gijón complex, progress on the DRI process has been slower. The other initiative, a new electric arc furnace intended to replace the Veriña steelworks, has secured all environmental permits. This hybrid furnace can utilize scrap metal and pre-reduced iron from DRI as feed material and has benefited from public support from IDAE and related programs. [Citation: Environmental permits record]
Approval of the 450 million euros in public aid was a pivotal step for ArcelorMittal to pursue a multi-billion euro decarbonization plan, a plan that would require automation and could affect roughly 1,000 jobs in Gijón and Avilés. Final approval also depends on a social agreement with unions and other factors such as energy costs. [Citation: Regional labor outlook]
Since 2022, ArcelorMittal has participated in the HyDeal consortium, which aims to produce hydrogen via solar-powered electrolysis in Castilla y León to serve large-scale industry in Asturias. In the initial phase, natural gas will still be used until hydrogen can be produced in sufficient quantities at a competitive price. [Citation: HyDeal project overview]
The intent is clear: to repair the Veriña blast furnace. Jose Manuel Arias, head of ArcelorMittal in Spain, conveyed this during a meeting with Francisco Blanco, Asturias’ Secretary General of Industry, and other senior managers, including Stefan Van Camp and Paul Avello. The government official stressed ArcelorMittal’s commitment to accurately diagnose the fault, assess repair needs, and undertake the reform with full government backing for the project. [Citation: Meeting summary]
The ArcelorMittal team outlined an ongoing plan to open the furnace shell and inspect its interior. It will take several weeks to determine the best repair solution, ensuring safe and sustainable operation. A cautious approach was stressed while awaiting a final decision and the anticipated program. [Citation: Technical assessment notes]
Regarding mobilization dates, Arias noted that an official announcement is planned, but discussions should proceed without disruption. Blanco echoed the government’s stance, highlighting concerns about the accident’s impact on employment and the need for a clear understanding of the situation. The government remains committed to supporting the project and its importance for the region and the nation. [Citation: Regional government statement]
The shared objective is to bring the furnace back online in a way that safeguards safety and environmental goals, aligning industrial needs with regional development expectations and demonstrating a cooperative, long-term vision for Spain’s steel industry.