Luxembourg-based steelmaker ArcelorMittal has announced that it will receive around €1.3 billion in funding for its decarbonization projects at its Bremen and Eisenhüttenstadt plants in Germany from the country’s Federal Ministry for Economic Affairs and Climate Action. The funding, which is subject to the approval of the European competition authority, relates to an overall project with an investment volume of around €2.5 billion for the two locations.
The company plans to build electric arc furnaces in Bremen and Eisenhüttenstadt, which will eventually produce steel using renewable electricity and with increased use of recycled scrap. In addition, a direct reduction plant is to be built in Bremen. The sponge iron produced at the direct reduction plant is to be used for steel production at Bremen and Eisenhüttenstadt with greatly reduced emissions.
The company plans to reduce carbon emissions by around 60 percent by 2030.