The European Investment Bank (EIB) has granted a €75 million loan to ArcelorMittal for scaling up breakthrough technology
On May 18th 2020, the European Investment Bank, with the support of the European Commission, has granted a € 75 million loan to ArcelorMittal for the construction of two ground-breaking projects at ArcelorMittal Ghent: Steelanol, an industrial-scale demonstration plant that will capture steel mill waste gases and biologically convert them into carbon-recycled ethanol, and Torero, a large-scale demonstration plant to convert waste wood into bio-coal. These two projects are ArcelorMittal's first large-scale implementations of new breakthrough solutions, as part of the company's commitment to reduce carbon emissions and develop low-carbon steelmaking technologies.
“Even in the current difficult times, Europe keeps its ambitious climate targets and the EIB, the EU climate bank, is committed to continuing to be a key partner. In particular in the steel industry, it means finding new ways to power machines and processes that are essential for reducing carbon emissions.", said EIB Vice-President Ambroise Fayolle. "Thanks to a strong partnership with the European Commission, the EIB is very pleased to support the Steelanol and Torero projects in their efforts to work on more climate friendly and competitive processes."
Mariya Gabriel, European Commissioner for Innovation, Research, Culture, Education and Youth, said: “This EU backed loan will enable us to demonstrate that European steelmaking plants can be competitive while reducing carbon emissions and help us attain our climate goals. More than this, if we invest in European research, education and innovation we can demonstrate the global leadership that can secure and strengthen these industries and the people and communities they support for future generations.”
Geert Van Poelvoorde, CEO ArcelorMittal Europe – Flat Products said: “To date we have committed more than €250 million to developing and testing technology that will help make steelmaking carbon neutral, leveraging our R&D facilities around the world. With the EIB and European Commission’s support, we can scale up technologies and transition steel to carbon neutrality, and thereby play a significant role in helping Europe achieve its green ambitions.”
Jennifer Holmgren, CEO LanzaTech said: “The European Commission and the EIB continue to play a key role in enabling a new carbon economy for Europe by supporting innovative projects. Chemicals and liquid fuels, especially in the aviation sector, still need a source of carbon, while power generation can and should be fully decarbonized. Carbon recycling gives us a choice as to where the carbon in our products comes from: fresh fossil or reused carbon emissions. Our groundbreaking partnership with ArcelorMittal highlights their continued leadership in helping to create a low carbon economy in Europe.”
The Steelanol installation will create up to 500 construction jobs over the next two years and 20 to 30 new permanent direct jobs. The project is expected to be completed in 2022.