ArcelorMittal has signed a memorandum of understanding (MoU) with the Spanish Government of a €1 billion investment in decarbonisation technologies at ArcelorMittal Asturias’ plant in Gijón, including the addition of a new Direct Reduced Iron (DRI) and Electric Arc Furnace (EAF).

The investments aim to reduce CO2 emissions at ArcelorMittal’s Spanish operations by up to 4.8 million tonnes, which represents approximately 50% of emissions, within the next five years. The key changes to the plant include the addition of a 2.3 million-tonne green hydrogen DRI unit, which will be complemented by a 1.1 million-tonne hybrid EAF.

ArcelorMittal will introduce a new manufacturing processes that contributes to a considerable reduction of CO2 emissions. This starts the transition of the Gijón plant away from the blast furnace to the DRI-EAF production route, which carries a significantly lower carbon footprint. The production of the new DRI and EAF will be in before the end of 2025.

To maximise the emissions reduction potential, ultimately green hydrogen will be used to reduce the iron ore in the DRI, with the EAF powered by renewable electricity. The initiative involves the construction of multiple large-scale solar farms, with hydrogen produced in situ and with the corresponding impact in terms of employment.

Speaking at the signing of the MoU in Gijón, Aditya Mittal, CEO ArcelorMittal, said:

“It is widely understood that for the world to achieve net-zero by 2050, faster progress over the next decade is essential. The MoU we have signed today will play an important role in doing exactly that."

Aditya Mittal, CEO ArcelorMittal

Expressing their support for the plan, Spain’s Minister of Industry María Reyes Maroto said:

“The Government of Spain and the ArcelorMittal Group fully agree that the transition towards a decarbonised economy is an essential objective for Spain”.

María Reyes Maroto, Spain’s Minister of Industry

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