US Steel Kosice, located in Slovakia, is set to receive a 300 million euro subsidy from the Slovak government's rebuilding and sustainable development fund. The funds are part of the European Union's initiative to decarbonize the region.
However, the subsidy covers only the initial steps of decarbonization, while the total cost estimated by the company's management is 1-1.3 billion euros. The money is intended to replace two of the three blast furnaces with electric arc furnaces.
The plan also includes the installation of a new continuous casting machine, furnace-to-clave units, and a hot-rolling mill. By adopting electric arc furnaces, the plant aims to reduce carbon dioxide emissions, eliminate dependence on iron ore and coking coal imports from Russia and Ukraine, and consume scrap metal from neighboring countries.
It was recently reported that one of the three furnaces may be shut down due to low demand and declining prices in the European steel market.