Decarbonising ArcelorMittal’s operations in France: three paths to carbon neutrality
To reach carbon neutrality, ArcelorMittal will completely change the way it produces steel by:
- Increasing the recycling of steel: one kilo of steel produced by ArcelorMittal in France will soon contain up to 25% recycled steel
- Developing innovative DRI to make steel without coal thanks to hydrogen
- Capturing residual CO2 for storage or usage (CCU/S)
Towards carbon-neutral steel production in France
The French Prime Minister announced support from the French Government for ArcelorMittal’s decarbonisation programme in France, which involves a €1.7 billion investment in its Fos-sur-Mer and Dunkirk sites in France. This investment will enable a profound transformation of steelmaking in France and a total reduction of close to 40% or 7.8 million tonnes per year in ArcelorMittal’s CO2 emissions in France by 2030. This transformation will represent a 10% reduction in greenhouse gas emissions from the manufacturing industry in France and put France’s steelmaking industry on the path of the Paris Agreement.
State aid to implement the decarbonisation roadmap
ArcelorMittal will implement €1.7 billion in investments by 2030 to accelerate the decarbonisation of its steelmaking sites in Fos-sur-Mer and Dunkirk while maintaining equivalent production capacities:
- In Fos-sur-Mer, ArcelorMittal will build an Electric Arc Furnace (EAF). This new unit will complement the ladle furnace announced last March and supported by France’s recovery plan, ‘France Relance.’ Together these investments will turn Fos-sur-Mer into a reference site for the production of low carbon, circular steel, made from recycled steel.
- In Dunkirk, ArcelorMittal will build a 2.5 million tonne Direct Reduction of Iron (DRI) unit to transform iron ore using hydrogen instead of coal. This DRI will be coupled with an innovative technology electric furnace and completed by an additional Electric Arc Furnace (EAF). Other investments are already under way to continue to increase the proportion of scrap steel used.
A second phase to achieve carbon neutrality by 2050
ArcelorMittal’s French operations have already started working on a second step in their decarbonisation programme, which will use the technologies implemented during the first step, along with carbon capture and storage or utilisation (CCU/S) technologies, assuming the technology sufficiently matures and regulation ensures it economic viability. This second step will enable ArcelorMittal’s French operations to reach carbon neutrality by 2050.
The partnership between ArcelorMittal and the French government for the projects is subject to EU approval, which is anticipated by the second quarter of this year, as well as the availability of economically viable energy infrastructure and supply.