EU steel companies have announced the receipt of €8.7 billion in grants or other state aid for the implementation of their decarbonization projects within 8 months of 2023.
Allocation of €4.9 billion has already been approved, discussions on providing the remaining funds are ongoing, reports GMK Center.
The main beneficiary of state support for decarbonization is ArcelorMittal. The company can receive 48% of all funds allocated by the governments of European countries for the industry. Allocation of €1.6 billion to ArcelorMittal has already been approved. These funds will be directed to the implementation of decarbonization projects in:
- Ghent (Belgium);
- Hamburg (Germany);
- Dunkirk (France);
- Gihony ( Spain);
Possible state support is discussed in:
- Bremen (Germany);
- Eisenhuttenstadt (Germany).
"The projects that received state support are mainly aimed at the transition from the oxygen-converter technology to the production of direct recovery iron and the use of electric arc furnaces," the authors said.
They emphasized that ThyssenKrupp stood out from the general trend. After all, the company received €2 billion in aid for the construction of a direct recovery plant and two smelting units that will replace the existing blast furnace.
It is noted that European governments plan to provide assistance in various forms:
- direct grants;
- preferential loans;
- compensation of operating costs, etc.
The European Commission believes that all support measures will contribute to the implementation of the EU Hydrogen Strategy, the achievement of the objectives of the European Green Deal and the rapid green transition under the REPowerEU plan.
The material said that other European metallurgical companies also expect to receive state aid for decarbonization. For example, voestalpine submitted an application for state funding in June 2023, a decision on it is expected in October-November. In the third competition of large projects of the Innovation Fund, H2 Green Steel was selected for preparation for the grant. But the amount of funding is unknown, as this grant will be awarded in the 4th quarter of 2023.
The authors added that Italy planned to receive €1 billion under the Just Transition Fund. Part of this funding was earmarked for the decarbonisation of Acciaierie d’Italia. But the Italian government later asked the EU to cancel €1bn of funding under the National Pandemic Plan for Acciaierie d'Italia's green hydrogen project. So far, the amount of funds for the decarbonization projects for Acciaierie d'Italia is unknown.
As EcoPolitic reported earlier, specialists of the EUROFER company developed a map of 60 key European steel projects with low carbon emissions, reflecting their emission reduction potential, financing and energy needs.
