Austrian steelmaker Voestalpine has announced plans to further expand decarbonized steelmaking operations at its Donawitz plant, targeting a complete transition to electrified steel production by 2030.
The strategy follows the planned commissioning of an electric arc furnace (EAF) in 2027, which will combine steel production based on green electricity with the site’s existing blast furnace operations. According to the company, the transition will make it possible to shut down one blast furnace as early as 2029.
Expansion to lift low-carbon steel capacity
Subject to the resolution of remaining funding issues, Voestalpine plans to invest approximately €100 million in the next phase of the project by 2030. The EAF currently under construction is expected to produce around 850,000 mt of carbon-reduced steel annually from 2027. Following the planned expansion, annual production capacity is expected to increase to as much as 1.5 million mt by 2030. The approved investment budget will support upgrades to the power supply system, construction of a third secondary metallurgy line and expansion of scrap logistics infrastructure.
Voestalpine stated that the expansion will reduce carbon emissions at the Donawitz site by more than 90 percent from 2030 onward compared with 2019 levels. As part of the long-term transformation, the plant’s two blast furnaces and sinter plant will eventually be decommissioned.
Greentec steel program progressing on schedule
According to Voestalpine, construction and technical work are progressing as planned. Key milestones completed in 2025 included construction of the EAF facility and installation of infrastructure supporting electricity and raw material supplies. Major objectives for 2026 include installation of core equipment and commissioning of power and scrap supply systems.
The Donawitz project forms part of Voestalpine’s greentec steel program, which the company describes as Austria’s largest climate protection initiative. By integrating electric arc furnaces powered by renewable electricity into its steelmaking operations, Voestalpine aims to reduce overall carbon emissions by up to 30 percent by 2029 compared with 2019 levels, equivalent to nearly 4 million mt of carbon dioxide annually. The investment volume for the first phase of the greentec steel program remains approximately €1.5 billion.
