ArcelorMittal Confirms Construction of an Electric Furnace in Dunkerque
ArcelorMittal has confirmed the construction of an Electric Arc Furnace (EAF) at its Dunkerque steel plant, a strategic investment in the decarbonization of its steel production in France. This decision follows European regulatory developments and the signing of a contract for the supply of decarbonized electricity with EDF.
Operational Details and Environmental Impact
The electric arc furnace, with a capacity of 2 million tonnes, is expected to be operational by 2029. It will produce steel with three times less CO2 emissions than a traditional blast furnace, emitting only 0.6 tonnes of CO2 per tonne of steel. This will be achieved by using a mix of scrap metal, crushed iron ore (HBI/DRI), and liquid metal. ArcelorMittal views this project as a major step in its strategy to decarbonize steel production in Europe. The financing will be supported by the Energy Savings Certificates (CEE), covering 50% of the total investment.
Investment Justification
The confirmation of this investment is based on three key factors: the adoption by the European Commission of regulatory proposals related to limiting unfair imports through the Tariff Rate Quota (TRQ) system and the reform of the Carbon Border Adjustment Mechanism (CBAM); the signing of a long-term contract for competitively priced, decarbonized electricity with EDF; and the support of the French authorities. ArcelorMittal notes that if these measures are fully implemented, they will restore fair and competitive conditions in the European steel market. Additionally, ArcelorMittal is starting a new electric steel production unit this quarter at the Mardyck plant near Dunkerque, with an investment of 500 million euros, aimed at supporting the electrification of industrial and automotive sectors.
