Luxembourg-based ArcelorMittal has announced that it has signed a letter of intent with the governments of Belgium and Flanders, supporting a €1.1 billion project to build a 2.5 million mt direct reduced iron (DRI) plant at its site in Gent in Belgium, as well as two new electric arc furnaces. Approval from the European Commission for the funding support will also be required.
Once the DRI and electric arc furnaces are built, there will be a transition period during which production will move gradually from blast furnace A to the DRI and electric arc furnaces, consequently blast furnace A will be closed as it reaches the end of its life. As a result, ArcelorMittal Belgium will reduce carbon emissions by 3.9 million mt per year by 2030.
The DRI plant will operate alongside Gent’s blast furnace B, which restarted production in March 2021 following a significant investment of €195 million.