ArcelorMittal has confirmed it will build an electric arc furnace (EAF) at its steelmaking site in Dunkirk, France, a €1.3bn ($1.5bn) project linked to its plans to reduce emissions from French steel production.
The company said the unit will have a capacity of two million tonnes, with start-up scheduled for 2029.
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The steelmaker said funding for the project will be supported by Energy Efficiency Certificates (CEE), a regulatory mechanism aimed at promoting energy savings and CO₂ reduction. ArcelorMittal said the support will represent 50% of the €1.3bn investment.
ArcelorMittal said the EAF will emit less CO2 than a blast furnace, stating “0.6 tonne CO2 per tonne of steel in the EAF based on a mix of scrap, HBI/DRI and hot metal”. The company said this equates to three times less CO2 compared with a blast furnace.
ArcelorMittal also pointed to recent EU policy proposals it said could affect market conditions for European steel producers. It cited European Commission proposals to limit imports through the Tariff Rate Quota mechanism and reforms to the Carbon Border Adjustment Mechanism.
ArcelorMittal CEO Aditya Mittal said: “I am delighted we are now able to launch this €1.3bn investment in Dunkirk, which underscores our group’s long-term commitment in France.
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By GlobalData“I must thank President Macron and the French government who – very early on – understood the challenges the European steel industry was facing.
“Their support, and in particular their efforts to drive changes to the mechanisms defending the steel market, will benefit the entire steel industry in Europe, starting here in Dunkirk.”
Additionally, ArcelorMittal said it will start up a new electrical steel production unit this quarter at its Mardyck plant near Dunkirk. The company said it has invested €500m in the facility, which it described as its largest investment in Europe in the past 10 years, excluding decarbonisation projects.
ArcelorMittal said the unit will expand its European product range to supply electrical steel for electrification needs in industrial and automotive applications.
