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European Commission to finance ArcelorMittal's decarbonization of steel production

The European Commission has accepted €515 million to finance the decarbonisation of ArcelorMittal's steel production.

European Commission to finance ArcelorMittal's decarbonization of steel production

The European Commission approved €515 million for ArcelorMittal as part of the EU hydrogen strategy to decarbonize steel production in Spain and Germany and reduce reliance on Russian fossil fuels.

Among them will be €460 million to assist ArcelorMittal in partially decarbonizing its steel production at its Gijon plant in northwest Spain.

The European Commission approved €515 million for ArcelorMittal as part of the EU hydrogen strategy to decarbonize steel production in Spain and Germany and reduce reliance on Russian fossil fuels. Among them will be €460 million to assist ArcelorMittal in partially decarbonizing its steel production at its Gijon plant in northwest Spain.

The conversion of the Gijon plant will include the construction of a direct reduced iron plant based on renewable hydrogen. The new plant could begin production by the end of 2025. By producing 2.3 million tons of low-carbon DRI per year, it is expected to save 70.9 million tons of CO2 emissions.

The remaining EUR 55 million will be used in Hamburg to construct a DRI demonstration plant using 100% renewable hydrogen with an annual capacity of 100,000 tons.

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