- €1 billion investment will reduce CO2 emissions by 4.8 million tonnes in five years
- New DRI and EAF installations in Gijón operational by end of 2025
- Green hydrogen and renewable electricity to power new installations
- Sestao plant to achieve zero carbon emissions by 2025
Investment and Emission Reduction
ArcelorMittal has signed a memorandum of understanding (MoU) with the Spanish Government for a €1 billion investment in decarbonisation technologies at its Gijón plant. This initiative aims to reduce CO2 emissions by up to 4.8 million tonnes, approximately 50%, within the next five years.
New Installations
The project includes the installation of a 2.3 million-tonne green hydrogen direct reduced iron (DRI) unit and a 1.1 million-tonne hybrid electric arc furnace (EAF) in Gijón. These installations will be operational by the end of 2025 and will transition the plant from the blast furnace-basic oxygen furnace route to the DRI-EAF route, significantly lowering its carbon footprint.
Green Hydrogen and Renewable Electricity
To maximize emissions reduction, green hydrogen will be used to reduce iron ore in the DRI, and the EAF will be powered by renewable electricity. The project relies on the support of national and regional governments to access green hydrogen, which will be produced using solar-powered electrolysis and transported via a network of pipelines.
Impact on Sestao Plant
The Gijón DRI will also supply the Sestao plant, which already uses the electric arc furnace route. By 2025, the Sestao plant will produce 1.6 million tonnes of steel and become the world’s first full-scale zero carbon-emissions steel plant.
Government Support
The Spanish Government will promote reforms and investments to support the project, aiming to cover at least half of the additional costs. This support is crucial for ArcelorMittal to remain competitive while accelerating its decarbonisation program.
