The European Commission (EC) on March 9 authorized investment aid of €30.18 million granted by Germany to a gas recycling project by ArcelorMittal Eisenhuettenstadt GmBH, subsidiary of the world's largest steelmaker ArcelorMittal.
According to a press release from the EU executive body, the Top Gas Recycling (TGR) project involves an innovative process that enables the separation of CO2 from other emission gases as they come out of the furnace and recycles the CO2-free emissions for the production of steel. The use of TGR will reduce CO2 emissions by 16 percent as compared to existing technology, as steelmakers use less coke.
The EC concluded that the environmental benefits triggered by the aid would largely outweigh potential distortions of competition. ArcelorMittal's attempt is the first ever application of TGR technology on an industrial scale.
The EC's vice president for competition Joaquin Almunia said on the decision, "The Top Gas Recycling technology will enable considerable reductions of CO2 emissions in the steel sector. The German measure is a contribution to the key objective of fighting climate change without unduly distorting competition."