ArcelorMittal to Receive €460 Million from Spain to Decarbonize Steel Production

The European Commission (EC) has approved a €460 million measure by Spain to support steel company ArcelorMittal’s partial decarbonization project in Gijón.

The project aims to reduce dependence on Russian fossil fuels and fast-forward the green transition in line with the REPowerEU Plan. The aid, which will take the form of a direct grant, will support the construction of a renewable hydrogen-based direct reduced iron plant that will substitute the current blast furnace.

The plant, which is expected to start operating by the end of 2025, will produce 2.3 million tonnes of low-carbon direct reduced iron per year, avoiding the release of 70.9 million tonnes of carbon dioxide.

ArcelorMittal has committed to sharing the technical know-how gained through the project with other European steel producers.

The project aligns with the EU Hydrogen Strategy and European Green Deal targets, contributing to the transition to a decarbonized economy.