On February 23, the European Commission approved, under EU State aid rules, a EUR 1.3 billion German measure to support ArcelorMittal Bremen and ArcelorMittal Eisenhüttenstadt in decarbonizing part of their steel production processes. The company currently operates three coal-based blast furnaces and four basic oxygen furnaces producing crude steel in these plants.
The aid will support the construction of a direct reduction plant and three new electric arc furnaces. The new installations will replace two of the three existing blast furnaces and two of the four existing oxygen furnaces. The new direct reduction plant will initially operate with natural gas and later operate using exclusively renewable hydrogen.
The new installations are envisioned to start operating in 2026. They are expected to produce 3.8 million tons of green crude steel per year. Once completed, the project is expected to avoid the release of more than 70 million tons of carbon dioxide (CO2) over the 16-year lifetime of the project.