Commission approves €460 million for hydrogen based steel production in Spain

The European Commission has approved, under EU State aid rules, a €460 million Spanish measure to support ArcelorMittal España (‘ArcelorMittal') in partially decarbonising its steel production processes.

Spain notified to the Commission a €460 million measure to support ArcelorMittal's project aimed to partially decarbonise its steel production in Gijón, where it operates two blast furnaces producing liquid hot metal from a mixture of iron ore, coke and limestone.

The aid, which will take the form of a direct grant, will support the construction of a renewable hydrogen-based direct reduced iron plant. Together with a new electric arc furnace, the plant will substitute the current blast furnace. Natural gas, initially used in the gas mix, will be gradually phased out of the steel production processes. Ultimately, the plant will be operated using renewable hydrogen with syngas produced from waste and metallurgical gases.

Also ArcelorMittal Belgium is looking to built a renewable hydrogen-based direct reduced iron plant.

Reference