The world’s leading steelmaker ArcelorMittal will invest 1.7 billion euros to decarbonize the production of steel from its two French factories in Dunkirk (North) and Fos-sur-Mer (Bouches-du-Rhône). “This is clearly ArcelorMittal’s biggest investment in France since the construction of the two plants, which means sustainability for steel production in France and Europe”, said Eric Niedziela, president of ArcelorMittal France and vice-president Climate Action of ArcelorMittal Europe, Thursday, February 3 to AFP.
The two sites of Dunkirk and Fos alone emit a quarter of French industrial greenhouse gas emissions, which themselves represent around 30% of the country’s carbon footprint. TThree out of five coal-fired blast furnaces will be shut down and replaced with electric furnaces. The carbon emissions avoided by this project alone represent 10% of French industrial emissions, argues the government.
Traditionally, coal, a source of fossil energy particularly emitting CO2, is used in two ways to produce steel: to purify iron ore, and to heat and reach the very high temperatures required in furnaces.
But we can replace it. In Dunkirk, the steelmaker is going to build a new so-called “direct reduction”, where coal will be replaced by hydrogen to purify the iron ore. This unit will be coupled with an electric oven as well as another additional electric oven. In Fos-sur-Mer, ArcelorMittal will install an electric furnace allowing it to specialize in the production of recycled steel, that is to say emitting little carbon dioxide compared to traditional steel.
To set up his project, the industrialist will receive public aid from the France 2030 investment plan, and is also negotiating at the same time with Brussels. In total, the State will devote an envelope of 5.6 billion euros out of the 34 billion of France 2030 to help three highly polluting sectors to emit less CO2: steel-aluminum, chemicals and cement, according to an allocation mechanism innovative in Europe, Matignon told AFP. In fact, the State will buy tons of carbon not emitted by industrialists thanks to their decarbonization projects.
ArcelorMittal’s investment is part of the group’s previously announced $10 billion package to reduce its overall carbon footprint. The group had previously declined its investments in other countries, in Belgium, Spain and Canada. ArcelorMittal has set itself the goal of reducing its global emissions by 25% by 2030 compared to those of 2018, and by 35% in Europe.