The European Commission announced on Thursday that it has approved €280 million ($308 million) in state aid to Belgian steelmaker ArcelorMittal to decarbonise its production.
The aid will be used for the construction of a direct reduced iron plant, which will replace one of two existing blast furnaces along with a new electric arc furnace. The plant, which is expected to be operational by 2026, will eventually run on renewable hydrogen.
The Commission said the aid is necessary to incentivise investment in sustainable steel production and has sufficient safeguards to limit the impact on competition.
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